The first bids are in, and as speculated, Paramount, Comcast and Netflix all put their hats in the ring to buy Warner Bros. Discovery.

There aren’t many specifics available about the non-binding offers yet, and nothing has been publicly shared by any of the companies. Any insights at this point are coming from unnamed sources who are reportedly close to the dealmaking—which is unsurprising, since these companies have probably rolled out plenty of NDAs to try to keep a lid on the exact nature of the bids.

The bits and pieces that have emerged so far from Hollywood trades and news outlets like The New York Times paint a picture of media giants wanting mostly the same thing: to combine with WBD’s film and streaming business to create a media juggernaut.

What doesn’t require any speculation is that this acquisition, however it works out, will seriously reshape the entertainment industry. The company that eventually acquires WBD would get its hands on some major kids & family brands, including Looney Tunes, the DC Comics business and the entire Warner Bros. film library (Accio, Harry Potter!). And another consolidation will likely mean fewer remaining buyers for kids content…again.

Information about the bids is almost certain to shift as more details become available—and more offers are expected to be made public in the coming days and weeks. But here’s what’s being said so far:

Netflix

The world’s biggest streamer is only interested in WBD’s streaming and studio businesses, not its cable TV operations. This bid would be as significant for Netflix as it would for WBD, since the SVOD has pledged to keep releasing Warner Bros. films theatrically. That would be a major shift for a company that has always prioritized streaming over building any sort of sustained theatrical business. But perhaps taking over a studio that already has this business set up, especially when kids films are proving to be box-office gold, is more appealing than trying to create that revenue stream itself. It would also be quite a boost to Netflix’s kids business, which has been growing, but doesn’t have the same number of kids hits as WBD.

Paramount Skydance 

David Ellison, fresh off of the Paramount Skydance merger, wants to combine his new company with WBD to create a media juggernaut. Paramount has already submitted several bids to acquire the entire company, including its cable channels. And it believes its traditional TV business would be a great match for WBD’s. There’s also been speculation that Skydance Paramount is courting RedBird Capital Investments (which funded the Paramount purchase) and sovereign wealth funds from the Middle East—although Paramount Skydance has recently denied this—to boost its bids. We might soon be talking about what happens to Nickelodeon in a media portfolio that combines WBD, Paramount and Skydance assets. Would all these brands together create a kids behemoth?

Comcast 

The NBCUniversal owner also wants WBD’s studio and streaming business, and it’s especially interested in getting its hands on iconic characters like Batman to take its theme park and streaming businesses to a new level. This purchase would combine two of the market’s biggest movie studios, and also WBD’s animation studios and DreamWorks Animation. Plus, it would bring together HBO Max and Peacock, which had 41 million subscribers as of January, while Discovery+ and HBO Max had a combined 122.3 million subs as of May.

How will it all shake out?

Whoever has the winning bid will have to go through the usual regulatory processes, and perhaps even face challenges from the government if US President Donald Trump decides to weigh in. Trump is apparently friendly with Ellison and his father, Larry Ellison, but not so much with Comcast’s Brian Roberts, who Trump has said should be investigated for how NBC has criticized him.

Either way, the bids kick off what is sure to be another long M&A process in an industry that’s still reeling from the layoffs that followed the Paramount Skydance merger.

Photo by Gavin Wilson on Unsplash