Federal investigators are conducting private meetings with leading cinema chains across the nation to discuss concerns about Warner Bros Discovery’s proposed sale, according to a Wednesday report from Bloomberg News.
TV Delmarva was unable to confirm the report independently. Neither Warner Bros Discovery nor the Justice Department provided immediate responses when asked for comment.
According to the Bloomberg report, federal attorneys are gathering details about how such a transaction might affect movie audiences and whether it could lead to fewer theatrical releases, based on information from sources with knowledge of the discussions.
This development follows Warner Bros’ Tuesday decision to turn down Paramount Skydance’s recent hostile takeover attempt valued at $30 per share, while allowing the competing Hollywood company one week to present a “best and final” proposal that would exceed their current Netflix agreement.
Paramount confirmed receiving the seven-day deadline but described Warner Bros’ board decisions as “unusual.”
The parent company of CBS stated it would proceed with its tender offer, challenge what it calls the “inferior” Netflix deal, and maintain plans to propose directors for Warner Bros’ upcoming shareholder meeting.
Warner Bros plans to hold a shareholder vote on Netflix’s proposal for its streaming and film studio divisions on March 20.
Should shareholders approve the transaction, it would occur following Warner Bros’ separation of its Discovery Global cable networks, including CNN, TLC, Food Network and HGTV, into an independent publicly-traded entity.
The Bloomberg article noted that director James Cameron, who helmed Paramount’s “Titanic,” publicly supported the company’s Warner Bros acquisition attempt last November, stating that a Netflix purchase would represent “a disaster” for movie theaters.
