Disney CEO Bob Iger’s warning over Netflix-Warner – Business News
Disney CEO Bob Iger raised pink flags in regards to the prospect of Netflix buying Warner Bros. Discovery’s streaming and studio belongings, warning that the deal might hand the streaming giant unhealthy “pricing leverage over the consumer.”
Telling CNBC’s “Squawk Box” on Thursday that Disney has but to take an official stance on the proposed mega-merger, he however raised considerations.
“I think if I were a regulator looking at this combination, I’d look at a few things. First of all, I would look at what the impact is on the consumer,” he stated.
Disney CEO Bob Iger publicly raised pink flags Thursday about Netflix’s proposed acquisition of Warner Bros. Discovery’s streaming and studio belongings. Chris Pizzello/Invision/AP
“Will one company end up with pricing leverage that might be considered a negative or damaging to the consumer?” Iger continued.
“And with a significant amount of streaming subscriptions across the world, really, does that ultimately give Netflix pricing leverage over the consumer that it might not necessarily be healthy?”
Last week, Netflix and WBD introduced Netflix would purchase WBD’s movie and streaming companies — together with Warner Bros. studio and HBO — in a megadeal valuing the belongings at roughly $72 billion.
Under the proposed merger, WBD’s linear TV networks can be spun off into a separate publicly traded company, leaving Netflix with the crown jewels of Warner Bros.’ leisure portfolio.
Just three days later, Paramount Skydance launched a hostile all-cash bid for all of WBD for $30 per share — valuing the company at more than $108 billion and probably drawing out the bidding battle. Paramount is contemplating raising its takeover offer for Warner Bros. Discovery by as a lot as 10%, The Post solely reported on Thursday.
Antitrust scrutiny is already looming over the Netflix-WBD settlement, with critics arguing that combining Netflix and HBO Max would give the company an outsize share of world streaming viewing hours.
Iger additionally pointed to broader implications for Hollywood’s artistic financial system, notably theatrical distribution.
“I’d look at what the impact might be on what I’ll call the creative community, but also on the ecosystem of television and films, particularly motion pictures,” he stated.
“These movie theaters, which obviously run our films worldwide, operate with relatively thin margins, and they require not only volume, but they require interaction with these films and these movie companies that give them the ability to monetize successfully.”
“That’s a very, very important global business,” Iger added.
The Disney chief drew on his own expertise navigating megadeals, referencing Disney’s $72 billion acquisition of most of twenty first Century Fox in 2017 — a transaction that left the company closely leveraged simply forward of the COVID pandemic.
“We’ve got $33 billion in films in the last 20 years … so we’re mindful of protecting the health of that business,” he stated. “It’s very important to what I’ll call the media ecosystem globally.”
Iger stopped short of confirming whether or not Disney plans to foyer regulators or formally weigh in on the result of the Warner Bros. combat.
“We haven’t determined whether we’ll take a position or not … I was suggesting what regulators should be looking at,” he stated when requested instantly.
Paramount Skydance, led by CEO David Ellison, launched an unsolicited, hostile all-cash bid for your entire Warner Bros. Discovery company at $30 per share. Evan Agostini/Invision/AP
Paramount’s bid, in contrast, provides shareholders a larger all-cash price and avoids a breakup — however has to date been rebuffed by WBD management, together with CEO David Zaslav. Getty Images for HBO Max
Pressed additional on whether or not a Netflix-owned Warner Bros. Discovery would pose a more severe aggressive menace to Disney, Iger declined to elaborate.
“No, I’d rather not say anything more than I’ve said,” he replied.
Netflix’s proposal, which has already been authorized by the WBD board, hinges on regulatory clearance and the profitable separation of the company’s cable networks.
While Paramount’s bid provides shareholders a larger all-cash price and avoids a breakup, it has been rebuffed by WBD management so far.
“It’s nice to be an observer and not a participant in this,” Iger stated during the interview, which got here after Disney introduced a $1 billion investment and licensing deal with OpenAI.
