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By Daniel Trotta Dec 5 (Reuters) – Hollywood unions and theater owners on Friday sounded the alarm over Netflix's proposed $72 billion takeover of Warner Bros Discovery, warning the deal would cut jobs, concentrate power and reduce theatrical movie releases if the deal passes regulatory review. The deal would place the streaming giant's HBO brands under the Netflix umbrella and also hand control of the historic Warner Bros studio over to Netflix, which has already upended Hollywood by hastening the shift from movie releases in cinemas to home streaming. Netflix, the force behind "Stranger Things" and "Squid Game," could gain control of marquee Warner Bros titles such as "Batman" and "Casablanca."  "This merger must be blocked," the Writers Guild of America East and West said in a statement. "The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent." The deal faces antitrust reviews in the United States and Europe, and American politicians have already expressed skepticism. The Writers Guild, which represents writers in motion pictures, television, cable, broadcast news, podcasts and online media, raised concerns over job cuts, wage reductions, higher prices for consumers and worsening conditions for entertainment workers. Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes. The Netflix-Warner Bros deal risks eliminating 25% of the annual domestic box office, said Cinema United, the trade group representing 30,000 movie screens in the United States and 26,000 internationally. Netflix does release some films in theaters before making them available to subscribers, and the company said it would maintain theatrical releases for Warner Bros films and support Hollywood creative professionals.  Netflix said the deal would give subscribers more shows and films, boost its U.S. production and long-term spending on original content and create more jobs and opportunities for creative talent. Warner Bros Discovery did not immediately respond to Reuters requests for comment on the opponents' concerns. But Cinema United President Michael O'Leary called the merger "an unprecedented threat" and questioned whether Netflix would maintain the current level of distribution. "Sporadic and truncated theatrical releases to meet awards criteria in a handful of theaters is not a commitment to exhibition," O'Leary said. The Hollywood Teamsters, who represent drivers, casting professionals, mechanics and other workers in the entertainment industry, also opposed the deal, calling for "opposition across all levels of government" while urging antitrust enforcers to reject the deal. "Teamsters have been clear on our position that greed-fueled consolidation of corporate power, no matter what industry, is a direct threat to good union jobs, the livelihood of our members and the very existence of our industry," the union said in a statement. The Directors Guild of America, however, was more reserved, saying it had significant concerns to discuss with Netflix. "We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company. While we undertake this due diligence, we will not be commenting further," the DGA said in a statement. The screen actors union SAG-AFTRA said the merger "raises many serious questions" and it would comment further on the impact on its members after analyzing the deal. (Reporting by Daniel Trotta in Carlsbad, California; Editing by Peter Henderson and Lisa Shumaker)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Daniel Trotta Dec 5 (Reuters) – Hollywood unions and theater owners on Friday sounded the alarm over Netflix's proposed $72 billion takeover of Warner Bros Discovery, warning the deal would cut jobs, concentrate power and reduce theatrical movie releases if the deal passes regulatory review. The deal would place the streaming giant's HBO brands under the Netflix umbrella and also hand control of the historic Warner Bros studio over to Netflix, which has already upended Hollywood by hastening the shift from movie releases in cinemas to home streaming. Netflix, the force behind "Stranger Things" and "Squid Game," could gain control of marquee Warner Bros titles such as "Batman" and "Casablanca."  "This merger must be blocked," the Writers Guild of America East and West said in a statement. "The world’s largest streaming company swallowing one of its biggest competitors is what antitrust laws were designed to prevent." The deal faces antitrust reviews in the United States and Europe, and American politicians have already expressed skepticism. The Writers Guild, which represents writers in motion pictures, television, cable, broadcast news, podcasts and online media, raised concerns over job cuts, wage reductions, higher prices for consumers and worsening conditions for entertainment workers. Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes. The Netflix-Warner Bros deal risks eliminating 25% of the annual domestic box office, said Cinema United, the trade group representing 30,000 movie screens in the United States and 26,000 internationally. Netflix does release some films in theaters before making them available to subscribers, and the company said it would maintain theatrical releases for Warner Bros films and support Hollywood creative professionals.  Netflix said the deal would give subscribers more shows and films, boost its U.S. production and long-term spending on original content and create more jobs and opportunities for creative talent. Warner Bros Discovery did not immediately respond to Reuters requests for comment on the opponents' concerns. But Cinema United President Michael O'Leary called the merger "an unprecedented threat" and questioned whether Netflix would maintain the current level of distribution. "Sporadic and truncated theatrical releases to meet awards criteria in a handful of theaters is not a commitment to exhibition," O'Leary said. The Hollywood Teamsters, who represent drivers, casting professionals, mechanics and other workers in the entertainment industry, also opposed the deal, calling for "opposition across all levels of government" while urging antitrust enforcers to reject the deal. "Teamsters have been clear on our position that greed-fueled consolidation of corporate power, no matter what industry, is a direct threat to good union jobs, the livelihood of our members and the very existence of our industry," the union said in a statement. The Directors Guild of America, however, was more reserved, saying it had significant concerns to discuss with Netflix. "We will be meeting with Netflix to outline our concerns and better understand their vision for the future of the company. While we undertake this due diligence, we will not be commenting further," the DGA said in a statement. The screen actors union SAG-AFTRA said the merger "raises many serious questions" and it would comment further on the impact on its members after analyzing the deal. (Reporting by Daniel Trotta in Carlsbad, California; Editing by Peter Henderson and Lisa Shumaker)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Olivia Le Poidevin, Johnny Cotton and Cecile Mantovani GENEVA, Dec 5 (Reuters) – The Eurovision Song Contest was facing a potential budget squeeze after Spain, the Netherlands, Ireland and Slovenia said they would withdraw from next year's competition in protest at Israel's participation. The planned boycott brought to a head a row that has overshadowed the past two contests, and followed threats by the four they would pull out if the organiser did not exclude Israel over the conduct of its war against Hamas in Gaza. The walkout by Spain, one of the "big five" backers of the contest, and two of Europe's wealthiest countries, raises the prospect of less sponsorship income and viewers for the extravaganza that draws millions of viewers worldwide. AUSTRIA TO HOST EUROVISION IN MAY Austria will host the next edition in May, and national broadcaster ORF said the loss of the four would be felt – but would not prevent a successful show. "Overall, it would of course be a financial burden if several countries did not participate, but we had already taken this into account," ORF chief Roland Weissmann said. Members of the contest organiser, the European Broadcasting Union, on Thursday resisted calls by critics for a vote on Israel's participation, instead passing new rules aimed at discouraging governments from influencing the competition. "There are no winners here regardless of whether Israel's in or out, the whole thing feels a little bit toxic now," said Eurovision expert Paul Jordan, who noted the walkouts would hit the budget and viewership. Israel's 1998 Eurovision winner, Dana International, saw the boycott as insulting. "You don't punish an entire country because you disagree politically with its government," she said. Ireland's 1994 winner, Paul Harrington, said politics and world events were hard for the competition to avoid. "It's difficult, although it would be lovely to say, let's have this little moment every year where we forget about everything," he told Reuters from Dublin. BROADCASTERS CONTRIBUTE TO FINANCING The contest is mostly financed by contributions from broadcasters, the hosts, and sponsorship and revenue from the event, according to the Eurovision website. It does not disclose details of how much each country pays. Contributions from some 40 participating broadcasters are divvied up on the principle that the strongest shoulder the biggest burden. It also includes a contribution from the host broadcaster generally worth between 10 and 20 million euros. The host city also contributes, buttressed by revenues from sponsorship, ticket sales, televoting and merchandise. About 5.8 million viewers in Spain watched Eurovision 2025, Spanish broadcaster RTVE said. In the Netherlands, an average of 3.4 million people tuned in, Dutch broadcaster AvroTros said. Both declined to give details on their financial contributions. Irish broadcaster RTE said it had paid an annual EBU fee to participate in the 2025 contest of 100,270 euros. Contest director Martin Green says Eurovision is financially secure, and that any loss of audience could be compensated by the return of Bulgaria, Romania and Moldova next year. Still, the combined population of the four protesting nations is more than 2-1/2 times that of the three returners. And their combined economic output is many times greater. Israel's 2025 entrant, Yuval Raphael, was at the Nova music festival, a target of the October 7, 2023 attack by Palestinian militant group Hamas on Israel that triggered the Gaza war. A total of 1,200 people were killed and 251 taken hostage in the assault by Hamas, according to Israeli tallies. More than 70,000 people have been killed in Gaza in the ensuing conflict, according to health authorities in the enclave. (Additional reporting by Emily Rose in Jerusalem, Francois Murphy in Vienna, Charlotte Van Campenhout in Amsterdam, Emma Pinedo Gonzalez in Madrid and Padraic Halpin in Dublin; Writing by Dave Graham; Editing by Alex Richardson)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Harshita Mary Varghese, Aditya Soni and Dawn Chmielewski Dec 5 (Reuters) – Netflix on Friday agreed to buy Warner Bros Discovery's TV, film studios and streaming division for $72 billion, a deal that would hand control of one of Hollywood's most prized and oldest assets to the streaming pioneer. The deal represents a dramatic plot twist for Netflix, which rewrote the Hollywood script, upending how and when consumers watch movies and television shows. Suddenly, it has become the thing it disrupted – a mainstream studio.  "I know some of you are surprised that we're making this acquisition – and I certainly understand why," Netflix Co-CEO Ted Sarandos said on a call with investors. "Over the years, we have been known as builders, not buyers … but this is a rare opportunity that's going to help us achieve our mission to entertain the world, and bring people together through great stories." The agreement follows a weeks-long bidding war in which Netflix offered nearly $28 per share, eclipsing presumed front-runner Paramount Skydance, which made a series of unsolicited bids to acquire all of Warner Bros Discovery, including the cable TV assets slated for a spinoff.  Netflix, which has spent a decade developing such original series as "Stranger Things," "Bridgerton" and films like "KPop Demon Hunters," will gain access to Warner Bros' vast trove of content, built over the last century, including marquee franchises such as "Game of Thrones" and "Harry Potter," and DC Comics' roster of superheroes, including Batman and Superman.  The two companies together will "help define the next century of storytelling," said Sarandos, who had once said "the goal is to become HBO faster than HBO can become us."  Warner Bros Discovery shares rose 3.2% to $25.33, while Netflix fell about 0.2% and Paramount 6.1%. Paramount and Comcast, the third suitor, did not immediately respond to requests for comment.  Paramount offered $30 a share for Warner Bros Discovery and is considering making a takeover offer directly to WBD's shareholders, CNBC reported. Reuters could not verify the report and it was not immediately clear when the offer was made. STRONG ANTITRUST SCRUTINY LIKELY The Netflix deal, however, is likely to face strong antitrust scrutiny in Europe and the U.S. as it would give the world's biggest streaming service ownership of a rival that is home to HBO Max and boasts nearly 130 million streaming subscribers. "There will be resistance from parts of Hollywood and various unions," said Tom Harrington, head of television at Enders Analysis in London. "HBO, the creative jewel, would be terribly exposed within Netflix, although it has survived difficult owners for a lot of its existence." David Ellison-led Paramount, which kicked off the bidding war with a series of unsolicited offers and has close ties with the Trump administration, had questioned the sale process earlier this week and alleged favorable treatment to Netflix. Even before the bids were in, some members of Congress said a Netflix–Warner Bros Discovery deal could harm consumers and Hollywood. Cinema United, a global exhibition trade association, has said the deal poses an "unprecedented threat" to movie theaters worldwide, while former WarnerMedia CEO Jason Kilar said he could not think of "a more effective way to reduce competition in Hollywood than selling WBD to Netflix." Looking to allay some concerns, Netflix said the deal would give subscribers more shows and films, boost its U.S. production and long-term spending on original content and create more jobs and opportunities for creative talent. The company argued in deal talks that a combination of its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering. Netflix's Co-CEO Greg Peters told investors the company could package the streaming services together in a bundle — or find ways to introduce HBO Max to Netflix subscribers. The streaming service has a long history of building audiences for television series, as it did for "Breaking Bad" or the legal drama "Suits."  The company has told Warner Bros Discovery it would keep releasing the studio's films in cinemas in a bid to ease fears that its deal would eliminate another studio and major source of theatrical films, according to media reports. "In light of the current regulatory environment, this will raise eyebrows and concerns. The combined dominant streaming player will be heavily scrutinized," said PP Foresight analyst Paolo Pescatore.  "We should expect this to wrangle on given Paramount Skydance pursuit for Warner Bros Discovery." CASH-AND-STOCK DEAL Comcast, the third suitor, was trading little changed.  Under the deal, each Warner Bros Discovery shareholder will receive $23.25 in cash and about $4.50 in Netflix stock per share, valuing Warner at $27.75 a share, or about $72 billion in equity and $82.7 billion including debt. The deal represents a premium of 121.3% to Warner Bros Discovery's closing price on Sept. 10, before initial reports of a possible buyout emerged.  The deal is expected to close after Warner Bros Discovery spins off its global networks unit, Discovery Global, into a separate listed company, a move now set for completion in the third quarter of 2026. Netflix has offered Warner Bros Discovery a $5.8 billion breakup fee, while Warner Bros Discovery would pay Netflix $2.8 billion if the deal collapses. Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes.  NETFLIX GROWTH WORRIES Analysts have said Netflix is driven by a desire to lock up long-term rights to hit shows and films and rely less on outside studios as it expands into gaming and looks for new avenues of growth after the success of its password-sharing crackdown. Its shares are up just 16% this year, after surging more than 80% in 2024, as investors worry its breakneck growth could be slowing, especially after it stopped disclosing subscriber figures earlier this year. The company has leaned on its ad-supported tier to drive growth, but that is not expected to be a major revenue engine until next year, while analysts say its push into video games has stumbled amid strategy shifts and executive departures.  Buying Warner Bros, however, could deepen its gaming bet. WBD is one of the few entertainment companies to notch big successes in the sector, including its Harry Potter title "Hogwarts Legacy," which has generated more than $1 billion in revenue. (Reporting by Aditya Soni and Harshita Mary Varghese in Bengaluru, additional reporting by Zaheer Kachwala, Anhata Rooprai and Jody Godoy; Editing by Arun Koyyur and Nick Zieminski)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Harshita Mary Varghese, Aditya Soni and Dawn Chmielewski Dec 5 (Reuters) – Netflix on Friday agreed to buy Warner Bros Discovery's TV, film studios and streaming division for $72 billion, a deal that would hand control of one of Hollywood's most prized and oldest assets to the streaming pioneer. The deal represents a dramatic plot twist for Netflix, which rewrote the Hollywood script, upending how and when consumers watch movies and television shows. Suddenly, it has become the thing it disrupted – a mainstream studio.  "I know some of you are surprised that we're making this acquisition – and I certainly understand why," Netflix Co-CEO Ted Sarandos said on a call with investors. "Over the years, we have been known as builders, not buyers … but this is a rare opportunity that's going to help us achieve our mission to entertain the world, and bring people together through great stories." The agreement follows a weeks-long bidding war in which Netflix offered nearly $28 per share, eclipsing presumed front-runner Paramount Skydance, which made a series of unsolicited bids to acquire all of Warner Bros Discovery, including the cable TV assets slated for a spinoff.  Netflix, which has spent a decade developing such original series as "Stranger Things," "Bridgerton" and films like "KPop Demon Hunters," will gain access to Warner Bros' vast trove of content, built over the last century, including marquee franchises such as "Game of Thrones" and "Harry Potter," and DC Comics' roster of superheroes, including Batman and Superman.  The two companies together will "help define the next century of storytelling," said Sarandos, who had once said "the goal is to become HBO faster than HBO can become us."  Warner Bros Discovery shares rose 3.2% to $25.33, while Netflix fell about 0.2% and Paramount 6.1%. Paramount and Comcast, the third suitor, did not immediately respond to requests for comment.  Paramount offered $30 a share for Warner Bros Discovery, CNBC reported. Reuters could not verify the report and it was not immediately clear when the offer was made. STRONG ANTITRUST SCRUTINY LIKELY The Netflix deal, however, is likely to face strong antitrust scrutiny in Europe and the U.S. as it would give the world's biggest streaming service ownership of a rival that is home to HBO Max and boasts nearly 130 million streaming subscribers. "There will be resistance from parts of Hollywood and various unions," said Tom Harrington, head of television at Enders Analysis in London. "HBO, the creative jewel, would be terribly exposed within Netflix, although it has survived difficult owners for a lot of its existence." David Ellison-led Paramount, which kicked off the bidding war with a series of unsolicited offers and has close ties with the Trump administration, had questioned the sale process earlier this week and alleged favorable treatment to Netflix. Even before the bids were in, some members of Congress said a Netflix–Warner Bros Discovery deal could harm consumers and Hollywood. Cinema United, a global exhibition trade association, has said the deal poses an "unprecedented threat" to movie theaters worldwide, while former WarnerMedia CEO Jason Kilar said he could not think of "a more effective way to reduce competition in Hollywood than selling WBD to Netflix." Looking to allay some concerns, Netflix said the deal would give subscribers more shows and films, boost its U.S. production and long-term spending on original content and create more jobs and opportunities for creative talent. The company argued in deal talks that a combination of its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering. Netflix's Co-CEO Greg Peters told investors the company could package the streaming services together in a bundle — or find ways to introduce HBO Max to Netflix subscribers. The streaming service has a long history of building audiences for television series, as it did for "Breaking Bad" or the legal drama "Suits."  The company has told Warner Bros Discovery it would keep releasing the studio's films in cinemas in a bid to ease fears that its deal would eliminate another studio and major source of theatrical films, according to media reports. "In light of the current regulatory environment, this will raise eyebrows and concerns. The combined dominant streaming player will be heavily scrutinized," said PP Foresight analyst Paolo Pescatore.  "We should expect this to wrangle on given Paramount Skydance pursuit for Warner Bros Discovery." CASH-AND-STOCK DEAL Comcast, the third suitor, was trading little changed.  Under the deal, each Warner Bros Discovery shareholder will receive $23.25 in cash and about $4.50 in Netflix stock per share, valuing Warner at $27.75 a share, or about $72 billion in equity and $82.7 billion including debt. The deal represents a premium of 121.3% to Warner Bros Discovery's closing price on Sept. 10, before initial reports of a possible buyout emerged.  The deal is expected to close after Warner Bros Discovery spins off its global networks unit, Discovery Global, into a separate listed company, a move now set for completion in the third quarter of 2026. Netflix has offered Warner Bros Discovery a $5.8 billion breakup fee, while Warner Bros Discovery would pay Netflix $2.8 billion if the deal collapses. Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes.  NETFLIX GROWTH WORRIES Analysts have said Netflix is driven by a desire to lock up long-term rights to hit shows and films and rely less on outside studios as it expands into gaming and looks for new avenues of growth after the success of its password-sharing crackdown. Its shares are up just 16% this year, after surging more than 80% in 2024, as investors worry its breakneck growth could be slowing, especially after it stopped disclosing subscriber figures earlier this year. The company has leaned on its ad-supported tier to drive growth, but that is not expected to be a major revenue engine until next year, while analysts say its push into video games has stumbled amid strategy shifts and executive departures.  Buying Warner Bros, however, could deepen its gaming bet. WBD is one of the few entertainment companies to notch big successes in the sector, including its Harry Potter title "Hogwarts Legacy," which has generated more than $1 billion in revenue. (Reporting by Aditya Soni and Harshita Mary Varghese in Bengaluru, additional reporting by Zaheer Kachwala, Anhata Rooprai and Jody Godoy; Editing by Arun Koyyur and Nick Zieminski)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Olivia Le Poidevin, Johnny Cotton and Cecile Mantovani GENEVA, Dec 5 (Reuters) – The Eurovision Song Contest was facing a potential budget squeeze after Spain, the Netherlands, Ireland and Slovenia said they would withdraw from next year's competition in protest at Israel's participation. The planned boycott brought to a head a row that has overshadowed the past two contests, and followed threats by the four they would pull out if the organiser did not exclude Israel over the conduct of its war against Hamas in Gaza. The walkout by Spain, one of the "big five" backers of the contest, and two of Europe's wealthiest countries, raises the prospect of less sponsorship income and viewers for the extravaganza that draws millions of viewers worldwide. AUSTRIA TO HOST EUROVISION IN MAY Austria will host the next edition in May, and national broadcaster ORF said the loss of the four would be felt – but would not prevent a successful show. "Overall, it would of course be a financial burden if several countries did not participate, but we had already taken this into account," ORF chief Roland Weissmann said. Members of the contest organiser, the European Broadcasting Union, on Thursday resisted calls by critics for a vote on Israel's participation, instead passing new rules aimed at discouraging governments from influencing the competition. "There are no winners here regardless of whether Israel's in or out, the whole thing feels a little bit toxic now," said Eurovision expert Paul Jordan, who noted the walkouts would hit the budget and viewership. The contest is mostly financed by contributions from broadcasters, the hosts, and sponsorship and revenue from the event, according to the Eurovision website. It does not disclose details of how much each country pays. Contributions from some 40 participating broadcasters are divvied up on the principle that the strongest shoulder the biggest burden. It also includes a contribution from the host broadcaster generally worth between 10 and 20 million euros. THREE COUNTRIES RETURNING THIS YEAR The host city also contributes, buttressed by revenues from sponsorship, ticket sales, televoting and merchandise. About 5.8 million viewers in Spain watched Eurovision 2025, Spanish broadcaster RTVE said. In the Netherlands, an average of 3.4 million people tuned in, Dutch broadcaster AvroTros said. Both declined to give details on their financial contributions. Irish broadcaster RTE said it had paid an annual EBU fee to participate in the 2025 contest of 100,270 euros. Contest director Martin Green says Eurovision is financially secure, and that any loss of audience could be compensated by the return of Bulgaria, Romania and Moldova next year. Still, the combined population of the four protesting nations is more than 2-1/2 times that of the three returners. And their combined economic output is many times greater. Israel's 2025 entrant, Yuval Raphael, was at the Nova music festival, a target of the October 7, 2023 attack by Palestinian militant group Hamas on Israel that triggered the Gaza war. A total of 1,200 people were killed and 251 taken hostage in the assault by Hamas, according to Israeli tallies. More than 70,000 people have been killed in Gaza in the ensuing conflict, according to health authorities in the enclave. The Eurovision Song Contest dates back to 1956 and reaches around 160 million viewers, according to the EBU – more than the almost 128 million recorded for this year's U.S. Super Bowl, according to figures from Nielsen. (Additional reporting by Emily Rose in Jerusalem, Francois Murphy in Vienna, Charlotte Van Campenhout in Amsterdam, Emma Pinedo Gonzalez in Madrid and Padraic Halpin in Dublin; Writing by Dave Graham; Editing by Alex Richardson)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Harshita Mary Varghese, Aditya Soni and Dawn Chmielewski Dec 5 (Reuters) – Netflix on Friday agreed to buy Warner Bros Discovery's TV, film studios and streaming division for $72 billion, a deal that would hand control of one of Hollywood's most prized and oldest assets to the streaming pioneer. The deal represents a dramatic plot twist for Netflix, which rewrote the Hollywood script, upending how and when consumers watch movies and television shows. Suddenly, it has become the thing it disrupted – a mainstream studio.  "I know some of you are surprised that we're making this acquisition – and I certainly understand why," Netflix Co-CEO Ted Sarandos said on a call with investors. "Over the years, we have been known as builders, not buyers … but this is a rare opportunity that's going to help us achieve our mission to entertain the world, and bring people together through great stories." The agreement follows a weeks-long bidding war in which Netflix offered nearly $28 per share, eclipsing presumed front-runner Paramount Skydance, which made a series of unsolicited bids to acquire all of Warner Bros Discovery, including the cable TV assets slated for a spinoff.  Netflix, which has spent a decade developing such original series as "Stranger Things," "Bridgerton" and films like "KPop Demon Hunters," will gain access to Warner Bros' vast trove of content, built over the last century, including marquee franchises such as "Game of Thrones" and "Harry Potter," and DC Comics' roster of superheroes, including Batman and Superman.  The two companies together will "help define the next century of storytelling," said Sarandos, who had once said "the goal is to become HBO faster than HBO can become us."  Warner Bros Discovery shares rose 3.2% to $25.33, while Netflix fell about 0.2% and Paramount 6.1%. Paramount and Comcast, the third suitor, did not immediately respond to requests for comment.  Paramount offered $30 a share for Warner Bros Discovery, CNBC reported. Reuters could not verify the report and it was not immediately clear when the offer was made. STRONG ANTITRUST SCRUTINY LIKELY The Netflix deal, however, is likely to face strong antitrust scrutiny in Europe and the U.S. as it would give the world's biggest streaming service ownership of a rival that is home to HBO Max and boasts nearly 130 million streaming subscribers. "There will be resistance from parts of Hollywood and various unions," said Tom Harrington, head of television at Enders Analysis in London. "HBO, the creative jewel, would be terribly exposed within Netflix, although it has survived difficult owners for a lot of its existence." David Ellison-led Paramount, which kicked off the bidding war with a series of unsolicited offers and has close ties with the Trump administration, had questioned the sale process earlier this week and alleged favorable treatment to Netflix. Even before the bids were in, some members of Congress said a Netflix–Warner Bros Discovery deal could harm consumers and Hollywood. Cinema United, a global exhibition trade association, has said the deal poses an "unprecedented threat" to movie theaters worldwide, while former WarnerMedia CEO Jason Kilar said he could not think of "a more effective way to reduce competition in Hollywood than selling WBD to Netflix." Looking to allay some concerns, Netflix said the deal would give subscribers more shows and films, boost its U.S. production and long-term spending on original content and create more jobs and opportunities for creative talent. The company argued in deal talks that a combination of its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering. Netflix's Co-CEO Greg Peters told investors the company could package the streaming services together in a bundle — or find ways to introduce HBO Max to Netflix subscribers. The streaming service has a long history of building audiences for television series, as it did for "Breaking Bad" or the legal drama "Suits."  The company has told Warner Bros Discovery it would keep releasing the studio's films in cinemas in a bid to ease fears that its deal would eliminate another studio and major source of theatrical films, according to media reports. "In light of the current regulatory environment, this will raise eyebrows and concerns. The combined dominant streaming player will be heavily scrutinized," said PP Foresight analyst Paolo Pescatore.  "We should expect this to wrangle on given Paramount Skydance pursuit for Warner Bros Discovery." CASH-AND-STOCK DEAL Comcast, the third suitor, was trading little changed.  Under the deal, each Warner Bros Discovery shareholder will receive $23.25 in cash and about $4.50 in Netflix stock per share, valuing Warner at $27.75 a share, or about $72 billion in equity and $82.7 billion including debt. The deal represents a premium of 121.3% to Warner Bros Discovery's closing price on Sept. 10, before initial reports of a possible buyout emerged.  The deal is expected to close after Warner Bros Discovery spins off its global networks unit, Discovery Global, into a separate listed company, a move now set for completion in the third quarter of 2026. Netflix has offered Warner Bros Discovery a $5.8 billion breakup fee, while Warner Bros Discovery would pay Netflix $2.8 billion if the deal collapses. Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year after the deal closes.  NETFLIX GROWTH WORRIES Analysts have said Netflix is driven by a desire to lock up long-term rights to hit shows and films and rely less on outside studios as it expands into gaming and looks for new avenues of growth after the success of its password-sharing crackdown. Its shares are up just 16% this year, after surging more than 80% in 2024, as investors worry its breakneck growth could be slowing, especially after it stopped disclosing subscriber figures earlier this year. The company has leaned on its ad-supported tier to drive growth, but that is not expected to be a major revenue engine until next year, while analysts say its push into video games has stumbled amid strategy shifts and executive departures.  Buying Warner Bros, however, could deepen its gaming bet. WBD is one of the few entertainment companies to notch big successes in the sector, including its Harry Potter title "Hogwarts Legacy," which has generated more than $1 billion in revenue. (Reporting by Aditya Soni and Harshita Mary Varghese in Bengaluru, additional reporting by Zaheer Kachwala, Anhata Rooprai and Jody Godoy; Editing by Arun Koyyur and Nick Zieminski)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)

By Olivia Le Poidevin, Johnny Cotton and Cecile Mantovani GENEVA, Dec 5 (Reuters) – The Eurovision Song Contest was facing a potential budget squeeze after Spain, the Netherlands, Ireland and Slovenia said they would withdraw from next year's competition in protest at Israel's participation. The planned boycott brought to a head a row that has overshadowed the past two contests, and followed threats by the four they would pull out if the organiser did not exclude Israel over the conduct of its war against Hamas in Gaza. The walkout by Spain, one of the "big five" backers of the contest, and two of Europe's wealthiest countries, raises the prospect of less sponsorship income and viewers for the extravaganza that draws millions of viewers worldwide. AUSTRIA TO HOST EUROVISION IN MAY Austria will host the next edition in May, and national broadcaster ORF said the loss of the four would be felt – but would not prevent a successful show. "Overall, it would of course be a financial burden if several countries did not participate, but we had already taken this into account," ORF chief Roland Weissmann said. Members of the contest organiser, the European Broadcasting Union, on Thursday resisted calls by critics for a vote on Israel's participation, instead passing new rules aimed at discouraging governments from influencing the competition. "There are no winners here regardless of whether Israel's in or out, the whole thing feels a little bit toxic now," said Eurovision expert Paul Jordan, who noted the walkouts would hit the budget and viewership. Israel's 1998 Eurovision winner, Dana International, saw the boycott as insulting. "You don't punish an entire country because you disagree politically with its government," she said. Ireland's 1994 winner, Paul Harrington, said politics and world events were hard for the competition to avoid. "It's difficult, although it would be lovely to say, let's have this little moment every year where we forget about everything," he told Reuters from Dublin. BROADCASTERS CONTRIBUTE TO FINANCING The contest is mostly financed by contributions from broadcasters, the hosts, and sponsorship and revenue from the event, according to the Eurovision website. It does not disclose details of how much each country pays. Contributions from some 40 participating broadcasters are divvied up on the principle that the strongest shoulder the biggest burden. It also includes a contribution from the host broadcaster generally worth between 10 and 20 million euros. The host city also contributes, buttressed by revenues from sponsorship, ticket sales, televoting and merchandise. About 5.8 million viewers in Spain watched Eurovision 2025, Spanish broadcaster RTVE said. In the Netherlands, an average of 3.4 million people tuned in, Dutch broadcaster AvroTros said. Both declined to give details on their financial contributions. Irish broadcaster RTE said it had paid an annual EBU fee to participate in the 2025 contest of 100,270 euros. Contest director Martin Green says Eurovision is financially secure, and that any loss of audience could be compensated by the return of Bulgaria, Romania and Moldova next year. Still, the combined population of the four protesting nations is more than 2-1/2 times that of the three returners. And their combined economic output is many times greater. Israel's 2025 entrant, Yuval Raphael, was at the Nova music festival, a target of the October 7, 2023 attack by Palestinian militant group Hamas on Israel that triggered the Gaza war. A total of 1,200 people were killed and 251 taken hostage in the assault by Hamas, according to Israeli tallies. More than 70,000 people have been killed in Gaza in the ensuing conflict, according to health authorities in the enclave. (Additional reporting by Emily Rose in Jerusalem, Francois Murphy in Vienna, Charlotte Van Campenhout in Amsterdam, Emma Pinedo Gonzalez in Madrid and Padraic Halpin in Dublin; Writing by Dave Graham; Editing by Alex Richardson)

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By Harshita Mary Varghese and Aditya Soni Dec 5 (Reuters) – Netflix on Friday agreed to buy Warner Bros Discovery's TV, film studios and streaming division for $72 billion, a deal that would hand control of one of Hollywood's most prized and oldest assets to the streaming pioneer. The agreement follows a weeks-long bidding war in which Netflix offered nearly $28-a-share, eclipsing Paramount Skydance's close to $24 bid for the whole of Warner Bros Discovery, including the cable TV assets slated for a spinoff. Buying the owner of marquee franchises including "Game of Thrones", "DC Comics" and "Harry Potter" will further tilt the balance of power in Hollywood in favor of Netflix, which has so far built its dominance without major deals or a large content library. The two companies together will "help define the next century of storytelling", said Netflix co-CEO Ted Sarandos, who had once said "the goal is to become HBO faster than HBO can become us". Warner Bros Discovery shares rose nearly 4.4% to $25.6 premarket, while Netflix fell about 3% and Paramount 2.2%. Paramount and Comcast, the third suitor, did not immediately respond to requests for comment. Paramount offered $30 a share for Warner Brothers Discovery, CNBC reported in a news flash. Reuters could not verify the report and it was not immediately clear when the offer was made. STRONG ANTITRUST SCRUTINY LIKELY The Netflix deal, however, is likely to face strong antitrust scrutiny in Europe and the U.S. as it would give the world's biggest streaming service ownership of a rival that is home to HBO Max and boasts nearly 130 million streaming subscribers. David Ellison-led Paramount, which kicked off the bidding war with a series of unsolicited offers and has close ties with the Trump administration, had questioned the sale process earlier this week and alleged favorable treatment to Netflix. Even before the bids were in, some members of Congress said a Netflix–Warner Bros Discovery deal could harm consumers and Hollywood. Cinema United, a global exhibition trade association, has said the deal poses an "unprecedented threat" to movie theaters worldwide, while former WarnerMedia CEO Jason Kilar said he could not think of "a more effective way to reduce competition in Hollywood than selling WBD to Netflix". Looking to allay some concerns, Netflix said the deal would give subscribers more shows and films, boost its U.S. production and long-term spending on original content and create more jobs and opportunities for creative talent. The company argued in deal talks that a combination of its streaming service with HBO Max would benefit consumers by lowering the cost of a bundled offering. The company has told Warner Bros Discovery it would keep releasing the studio's films in cinemas in a bid to ease fears that its deal would eliminate another studio and major source of theatrical films, according to media reports. "In light of the current regulatory environment this will raise eyebrows and concerns. The combined dominant streaming player will be heavily scrutinized," said PP Foresight analyst Paolo Pescatore. "We should expect this to wrangle on given Paramount Skydance pursuit for Warner Bros Discovery." CASH-AND-STOCK DEAL Comcast, the third suitor, was trading little changed. Paramount and Comcast did not immediately respond to requests for comment. Under the deal, each Warner Bros Discovery shareholder will receive $23.25 in cash and about $4.50 in Netflix stock per share, valuing Warner at $27.75 a share, or about $72 billion in equity and $82.7 billion, including debt. The deal represents a premium of 121.3% to Warner Bros Discovery's closing price on September 10, before initial reports of a possible buyout emerged. The deal is expected to close after Warner Bros Discovery spins off its global networks unit, Discovery Global, into a separate listed company, a move now set for completion in the third quarter of 2026. Netflix has offered Warner Bros Discovery a $5.8 billion breakup fee, while Warner Bros Discovery would pay Netflix $2.8 billion if the deal collapses. Netflix said it expects to generate at least $2 billion to $3 billion in annual cost savings by the third year, after the deal closes. NETFLIX GROWTH WORRIES Analysts have said Netflix is driven by a desire to lock up long-term rights to hit shows and films and rely less on outside studios as it expands into gaming and looks for new avenues of growth after the success of its password-sharing crackdown. Its shares are up just 16% this year, after surging more than 80% in 2024, as investors worry its breakneck growth could be slowing, especially after it stopped disclosing subscriber figures earlier this year. The company has leaned on its ad-supported tier to drive growth, but that is not expected to be a major revenue engine until next year, while analysts say its push into video games has stumbled amid strategy shifts and executive departures. Buying Warner Bros, however, could deepen its gaming bet. WBD is one of the few entertainment companies to notch big successes in the sector, including its Harry Potter title "Hogwarts Legacy", which has generated more than $1 billion in revenue. (Reporting by Aditya Soni and Harshita Mary Varghese in Bengaluru, additional reporting by Zaheer Kachwala, Anhata Rooprai and Jody Godoy; Editing by Arun Koyyur)

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