Now Streaming: Paramount preparing majority cash bid for Warner Bros. Discovery

“Now Streaming” is The Fly’s weekly recap of the stories surrounding the biggest content streamers.

PLAYING THIS WEEKEND: Among this weekend’s notable new streaming content is Netflix (NFLX) romantic comedy film “The Wrong Paris,” starring Miranda Cosgrove and Pierson Fode. Also available to stream this week is the new season of Hulu’s (DIS) mystery comedy series “Only Murders in the Building,” starring Selena Gomez, Martin Short, and Steve Martin.

PARAMOUNT/WARNER BROS. DISCOVERY: On Thursday, the Wall Street Journal’s Jessica Toonkel (PSKY) is preparing a majority cash bid for Warner Bros. Discovery (WBD). Warner said late last year it planned to restructure into two operating divisions, one focused on the legacy cable TV business and the other on streaming and studios, but the offer will be for the entire company, including its cable networks and movie studio, people familiar with the situation told Toonkel. Soon after the Journal’s report, CNBC’s David Faber said a potential bid come arrive as soon as next week.

Meanwhile, a merger between Paramount Skydance and Warner Bros. Discovery would face regulatory scrutiny, financial, operational, and investor hurdles, as well as possible interference from President Donald Trump, Bloomberg’s Hannah Miller reported. The deal would also lead to thousands of job firings through consolidation of businesses like their competing streaming services, Paramount+ and HBO Max, Miller said.

Additionally, Warner Bros. Discovery CEO David Zaslav is looking to set up a bidding war for the company, The New York Post’s Charles Gasparino (GS) to gauge bidding interest from other media and tech outfits, including Amazon (AMZN), Apple (AAPL), and Netflix, in an effort to propel the stock price to potentially $40 a share. If Zaslav is unable to get the price he’s seeking, he plans to use the appreciation of his stock price to buy more content, the source says.

NETFLIX/AMAZON ADS: Amazon Ads and Netflix announced a partnership that provides advertisers using Amazon DSP with direct access to Netflix’s premium ad inventory. The offering will be available in the United States, United Kingdom, France, Spain, Mexico, Canada, Japan, Brazil, Italy, Germany and Australia, providing availability for marketers using Amazon DSP in these countries. The new integration will be available beginning in Q4 2025. “We’re delighted to enter into this partnership with Netflix, enabling brands to reach their subscribers and extensive library of premium content with Amazon DSP. Our goal is to remove the guesswork for advertisers by making it simple to manage all of their TV planning and buying with Amazon Ads,” said Paul Kotas, Senior Vice President, Amazon Ads. “This partnership with Amazon perfectly aligns with our commitment of bringing advertisers even greater flexibility in their buys to achieve their marketing goals. By integrating Amazon DSP and enabling even more advanced capabilities together over time, we’re making it easier than ever to connect with Netflix’s global engaged audience,” said Amy Reinhard, President of Advertising, Netflix.

COMCAST/RBC: RBC Capital initiated coverage of Comcast (CMCSA) with a Sector Perform rating and $38 price target. The firm believes Comcast is challenged due to intensified competition with fiber and fixed wireless access that pressure its subscriber metrics and market share. The company’s execution has been solid, but the shares have few catalysts to drive sustainable valuation expansion, the analyst tells investors in a research note.

ROKU/CITIZENS: Citizens JMP raised the firm’s price target on Roku (ROKU) to $145 from $110 and maintained an Outperform rating on the shares. Citizens estimates Roku could generate $1.6B in free cash flow by 2023, lending confidence to the belief that shares can generate a 28% five-year annualized return from current levels, the analyst tells investors in a research note.

STOCK PLAYS: Other publicly traded companies in the space include Fox Corporation (FOX), AMC Networks (AMCX), Apple (AAPL), and FuboTV (FUBO).