LOS ANGELES/NEW YORK: What started as a fact-finding mission for Netflix culminated in one of the biggest media deals in the last decade and one that stands to reshape the global entertainment business landscape, people with direct knowledge of the deal told Reuters. Netflix announced on Friday it had reached a deal to buy Warner Bros Discovery’s TV, film studios and streaming division for $72 billion. Although Netflix had publicly downplayed speculation about buying a major Hollywood studio as recently as October, the streaming pioneer threw its hat in the ring when Warner Bros Discovery kicked off an auction on October 21, after rejecting a trio of unsolicited offers from Paramount Skydance .
Details of Netflix’s plan and the Warner Bros board’s deliberations, based on interviews with seven advisers and executives, are reported here for the first time.
Initially motivated by curiosity about its business, Netflix executives quickly recognized the opportunity presented by Warner Bros, beyond the ability to offer the century-old studio’s deep catalog of movies and television shows to Netflix subscribers. Library titles are valuable to streaming services as these movies and shows can account for 80 percent of viewing, according to one person familiar with the business.
Warner Bros’ business units — particularly its theatrical distribution and promotion unit and its studio — were complementary to Netflix. The HBO Max streaming service also would benefit from insights learned years ago by streaming leader Netflix that would accelerate HBO’s growth, according to one person familiar with the situation. Netflix began flirting with the idea of acquiring the studio and streaming assets, another source familiar with the process told Reuters, after WBD announced plans in June to split into two publicly traded companies, separating its fading but cash-generating cable television networks from the legendary Warner Bros studios, HBO and the HBO Max streaming service.
Netflix and Warner Bros did not reply to requests for comment.
The work intensified this autumn, as Netflix began vying for the assets against Paramount and NBCUniversal’s parent company, Comcast.
Warner Bros kicked off the public auction in October, after Paramount submitted the first of three escalating offers for the media company in September. Sources familiar with the offer said Paramount aimed to pre-empt the planned separation because the split would undercut its ability to combine the traditional television networks businesses and increase the risk of being outbid for the studio by the likes of Netflix.
Around that time, banker JPMorgan Chase & Co. was advising Warner Bros Discovery CEO David Zaslav to consider reversing the order of the planned spin, shedding the Discovery Global unit comprising the company’s cable television assets first. This would give the company more flexibility, including the option to sell the studio, streaming and content assets, which advisers believed would draw strong interest, according to sources familiar with the matter.
Executives for the streaming service and its advisory team, which included the investment banks Moelis & Company, Wells Fargo and the law firm Skadden, Arps, Slate, Meagher & Flom, had been holding daily morning calls for the past two months, sources said. The group worked throughout Thanksgiving week — including multiple calls on Thanksgiving Day — to prepare a bid by the December 1 deadline.
Warner Bros’ board similarly convened every day for the last eight days leading up to the decision on Thursday, when Netflix presented the final offer that sources described as the only offer they considered binding and complete, sources familiar with the deliberations said.
The board favored Netflix’s deal, which would yield more immediate benefits over one by Comcast. The NBCUniversal parent proposed merging its entertainment division with Warner Bros Discovery, creating a much larger unit that would rival Walt Disney. But it would have taken years to execute, the sources said.
Comcast declined to comment.
Although Paramount raised its offer to $30 per share on Thursday for the entire company, for an equity value of $78 billion, according to sources familiar with the deal, the Warner Bros board had concerns about the financing, other sources said.
Paramount declined comment.
To reassure the seller over what is expected to be a significant regulatory review, Netflix put forward one of the largest breakup fees in M&A history of $5.8 billion, a sign of its belief it would win regulatory approval, the sources said. “No one lights $6 billion on fire without that conviction,” one of the sources said.
Until the moment late on Thursday night when Netflix learned its offer had been accepted — news that was greeted by clapping and cheering on a group call — one Netflix executive confided that they thought they had only a 50-50 chance.
How Netflix won Hollywood’s biggest prize, Warner Bros Discovery
https://arab.news/cx7jd
How Netflix won Hollywood’s biggest prize, Warner Bros Discovery
- Board rejected Paramount’s $30 a share bid amid funding concerns, sources say
- Warner Bros board met daily before accepting Netflix’s binding offer
In southeast Pakistan, Ramadan brings Hindus and Muslims closer
MITHI: Partab Shivani, a Hindu in Muslim-majority Pakistan, has fasted on and off during Ramadan for years, but this time is different as he practices abstinence for the entire holy month.
Every year, he and his friends in the southeastern city of Mithi arrange iftar, when Muslims break their daily fast, to foster peace and solidarity between the two religions.
“I believe we need to promote interfaith harmony. First, we are humans — religions came later,” Shivani, a 48-year-old social activist, told AFP, adding that he also reads the teachings of the Buddha.
“His message is about peace and ending war. Peace can spread through solidarity and by standing with one another. Distance only widens the gap between people,” he added.
Ninety-six percent of Pakistan’s 240 million people are Muslim. Just two percent are Hindu, most of them living in rural areas of Sindh province where Mithi is located.
In Mithi itself, most of the 60,000 inhabitants are Hindu.
Many of the city’s Hindus also observe Ramadan and iftar has become a social gathering where people from both faiths happily participate.
“This has been a wonderful tradition of ours for a very long time,” said Mir Muhammad Buledi, a 51-year-old Muslim friend who attended Shivani’s iftar gathering.
“It is a beautiful example of harmony between the two communities.”
Like brothers
Discrimination against minorities runs deep in Pakistan.
Following the end of British rule in South Asia in 1947, the subcontinent was partitioned into mainly Hindu India and Muslim-majority Pakistan.
That triggered widespread religious bloodshed in which hundreds of thousands were killed and millions displaced.
According to the Human Rights Commission of Pakistan, freedom of religion or belief is under constant threat, with religiously motivated violence and discrimination increasing yearly.
State authorities, often using religious unrest for political gain, have failed to address the crisis, the independent non-profit says.
But such tensions are absent in Mithi.
“I am a Hindu but I keep all the fasts during this month,” said Sushil Malani, a local politician. “I feel happy standing with my Muslim brothers.
“We celebrate Eid together as well. This tradition in the region is very old.”
Restaurants and tea stalls are closed across Pakistan during Ramadan.
Ramesh Kumar, a 52-year-old Hindu man who sells sweets and savoury items outside a Muslim shrine, keeps his push cart covered and closed until iftar.
“There is no discrimination among us if someone is Muslim or Hindu. I have been seeing this since my childhood that we all live together like brothers,” he said.
Muslim shrine, Hindu caretaker
Locals say Mithi’s peaceful religious coexistence can be traced to its remote location, emerging from the sand dunes of the Tharparkar desert, which borders the modern Indian state of Rajasthan.
Cows — considered sacred in Hinduism — roam freely in Mithi city, as they do in neighboring India.
At two Sufi Muslim shrines in the middle of the city, Hindu families arrange meals, bringing fruit, meals and juices for their Muslim neighbors to break their fasts.
“We respect Muslims,” said Mohan Lal Malhi, a Hindu caretaker of one of the shrines.
Mohan said his parents and elders taught him to respect people regardless of religion or color, and the traditions pass from one generation to the next.
Local residents said both communities consider their social relationships more important than their religious identity.
“You will see a (Sikh) gurdwara, a mosque, and a shrine standing side by side here,” Mohan said. “The atmosphere of this area teaches humanity.”
