European competition watchdogs are set to examine bids submitted by Netflix Inc. (NFLX) and Paramount Skydance Corp. (PSKY) to acquire the coveted assets of Warner Bros. Discovery Inc. (WBD) at the same time, according to a Bloomberg report from Wednesday, citing sources.
The report said the parallel examinations of the bids are now inevitable due to the timing of the rival proposals and the fact that both sides have already sounded out EU watchdogs about their plans.
Sources who spoke to Bloomberg said that a double probe would give Brussels unusual leverage over Warner’s destiny, as they could swiftly clear the deal for one bidder and launch a more in-depth investigation for the other, thus paving a path for a frontrunner to emerge eventually.
While Netflix is expected to win the bidding war for Warner’s assets, its $82.7B all-cash deal is considered more complicated from an antitrust perspective due to the streaming giant’s powerful position in subscription video-on-demand across Europe.
On the other hand, Paramount recently held talks with French President Emmanuel Macron and held discussions with UK officials as part of a European charm offensive to gain support for its $108.4B hostile bid for Warner Bros.