Progress on the future of Warner Bros Discovery slowed over Thanksgiving, but bidders soon returned from dining table to negotiation table with a revised round of bids summited at the beginning of this week.
Per various Hollywood reports, Netflix is still in the running for WBD’s studio and streaming assets, while Comcast has also submitted an improved bid for the same side of WBD. Netflix’s surprise involvement in the bidding has forced Comcast’s hand, with the operator plotting a move to merge NBCUniversal with the WBD studio and streaming business.
Comcast is reluctant for this opportunity, namely the iconic HBO brand, to fall into the lap of Netflix, its greatest competitor in entertainment.
Skydance Paramount has apparently submitted a fourth bid, likely its last, for the entirety of WBD.
The most controversial update in the past week is news that Paramount’s bid is backed by funds from three Arab states—Saudi Arabia, Qatar, and Abu Dhabi, per Variety.
That could mean HBO, CBS, CNN, and more gems of US screens, would be partially owned by overseas governments. And not just any governments, but nations where content is strictly regulated and must pass state censorship laws before airing on TV or in cinemas.
Any content conflicting with Islamic values, or seen as insulting the region, the state, or the royal family (in Saudia Arabia’s case) is routinely banned. Themes including LGBT, blasphemy, sexual content, or social-moral deviations, are also outlawed.
This puts Paramount in a predicament, considering that the latest Thanksgiving episode of South Park (Season 28, Episode 4), poked direct fun at the state of Saudi Arabia. South Park writers have routinely used episodes to provoke both Paramount and the US government, which inked a landmark $1.5 billion rights deal for South Park in June 2025, for being morally loose.
This particular episode, titled ‘Turkey Trot’ saw Saudi Arabia step in as the sole sponsor for the town’s annual Thanksgiving run, with a $5,000 price for the winner. A trailer for the Turkey Trot closes with the disclaimer, “Disparaging remarks toward the Saudi Royal Family are strictly prohibited,” and one prominent character refuses to partake in the race due to political conflicts of interest.
Hidden meanings and metaphors are aplenty, but the point is that it all makes Paramount’s work more difficult—hence the increased efforts of David and Larry Ellisson to get WBD over the line.
Growing increasingly desperate, Paramount has reportedly proposed a $5 billion break-up fee, more than doubling the size of its previous break-up fee of $2.1 million. This would see WBD shareholders receive $5 billion if the companies agreed to a deal which ultimately did not end up materializing, for various reasons.
Many investors will look at the break-up fee and see this as a no-brainer. Others will be more practical, looking to preserve the long-term integrity of WBD.
What does play into Paramount’s favor is that no other major bidders have been named for all of WBD, meaning accepting a deal from Comcast or Netflix for the studios and streaming division would see WBD’s networks business left high and dry.
A full sale would be much cleaner, even it would be conceding part-ownership to Middle Eastern petrostates.
Exact details on the size of each bid is not public at this stage, though WBD’s total market cap, as of writing, has exceeded $60 billion.