Last week Netflix announced it would be acquiring Warner Bros Discovery’s (WBD) film and TV studios, but several days later, Paramount swept in with a hostile cash offer.
The takeover saga has got not just Hollywood talking, but marketing agencies, politicians and regulatory bodies.
Guy Meyers, Senior Director, Customer Success (Global), Recurly, said: “The battle to acquire Warner Bros Discovery underlines just how much growth still exists in digital media.
“Whoever wins cannot lose sight of the value of the brand itself. WBD has more than a century of cultural equity and audience loyalty, and any new owner will need to protect that identity while modernising the experience around it.”
But why does it matter for gaming marketers and why has it been so controversial? SBC News takes a closer look.
The context
Cable TV in the US is continuing to struggle as streaming services become more and more popular.
WBD first announced its plan to split into two companies: one for its TV, film studios and its HBO Max streaming service. The second would be for the Discovery arm of the business (which it acquired in 2022), that comprises legacy TV channels including CNN and rights to broadcast the Olympic games, Australian Open, Wimbledon, motorsports among others.
Netflix offered $72bn for the first division of the WBD business. This would give the streaming giant the rights to global hits like the Harry Potter and Game of Thrones franchises; Warner Bros extensive film library, HBO and HBO Max streaming services and TNT Sports International.
If this deal were to happen, it would not be finalised until the split is complete.
Several days later, Paramount went directly to shareholders with a cash offer of $108.4bn for the entirety of WBD and asked the board to reject the Netflix deal. Under this deal, Paramount is expected to pay roughly $18bn more in total per share.
It would also mean rival US news channels – CBS and CNN – would be under the same parent company.
Why it matters
Netflix’s official advertising policy prohibits direct gambling ads on its platform. However, as it has acquired rights to broadcast NFL games and other sports, the steamer has begun airing betting ads such as from FanDuel during games.
It also has betting games and content deals on its platform, such as Squid Game slots.
A takeover could mean more opportunities in this arena particularly within sports and sports betting.
Meyers told SBC News: “One of the biggest opportunities lies in sport. Fandom is bigger than ever, fuelled by live rights, behind-the-scenes documentaries and film-driven storytelling. It creates more touchpoints than any other genre and opens the door to powerful bundles that connect content, retail and services in ways that drive recurring revenue.
“The risk is simple. Audiences will only stay loyal if value continues and customer service stays strong. Consumers consider value for money (89%) and price (84%) more important than any other reasons when considering a new subscription service. If the value is clear and the experience is seamless, subscribers will keep coming back for more.”
For Andreas Ohlbach, Head of Client Services at Transmission, this bidding war is also creating opportunities for agencies. He said: “As more audiences move to subscription-based streaming, platforms are under pressure to stand out. And that means they’re far more open to bold partnerships, fresh ad formats, and new ways of blending brands with entertainment.”
Regardless of who buys WBD, this move could increase competition, which in turn could “create moments where advertisers can tap into cultural buzz”, added Ohibach.
“It’s a chance to develop campaigns that feel more like entertainment: behind-the-scenes content, character-driven brand collaborations, interactive promos, and integrated storytelling that travels across social, streaming and traditional TV.
“Put simply: as the streaming giants fight for attention, they create more room for us to make standout, imaginative work.”