Commercial Awareness Compass

Bid war for Warner Bros: when more money is not the better deal

Henry Nelson Case

Henry is a 5 year qualified commercial lawyer with experience on a whole host of commercial contracts, having gained exposure to a diverse range of work through both working in-house and in private practice. Alongside working as lawyer, Henry also creates content on social media – where he strives to promote the importance of mental health and wellbeing in the workplace and challenges toxic corporate behaviours.

Published Thu, 22 Jan

Warner Bros has agreed a binding merger deal with Netflix for its film and streaming business, offering a deal worth $72bn. Shortly after, Paramount returned with a higher bid to acquire the entire Warner Bros group at over $108bn. On paper, the numbers look compelling. In practice, the deal structure, funding, and risk profile tell a very different story.

So far, the Warner Bros board has rejected Paramount’s, pointing to debt heavy financing, execution risk, and the high cost of walking away from an existing binding agreement with Netflix. This is not just about price. It is about certainty, stability, and long-term value.

Why would directors turn down more money? What makes one buyer safer than another? And where do lawyers shape the outcome of deals like this?

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