Netflix is the top bidder for Warner Bros. Discovery, with Paramount also in the running. Netflix is interested in streaming and studios, while Paramount may bid for all of Warner Bros. The acquisition could impact streaming revenue and content production for both companies, with potential effects on their fair value estimates.

Paramount has 78 million global streaming subscribers and relies on its service for future viability. A combination with HBO Max could secure this viability and lead to future growth. Despite a declining traditional TV business, the acquisition would provide a more certain path for Paramount’s streaming service, Paramount+.

Read more at Morningstar: Netflix and Paramount Both Stand to Lose If Netflix Wins the Warner Bros. Auction