Hollywood billionaire’s battle royale over Warner Bros comes to Britain

The billionaire boss of Paramount has held talks with the Culture Secretary to lobby against Netflix’s $83bn (£62bn) takeover of Warner Bros.David Ellison, son of Oracle founder Larry Ellison, travelled to London on Thursday for a meeting with Lisa Nandy as part of a wider charm offensive designed to defeat Netflix in the escalating takeover battle.Paramount is trying to convince shareholders to back its $30-per-share takeover offer and encourage regulators to obstruct Netflix’s rival bid, which was accepted by Warner Bros late last year.Warner Bros has repeatedly rebuffed Paramount’s overtures, insisting that the $83bn deal agreed with Netflix last month remains superior.Paramount’s campaign is centred on arguments that a merger between Netflix and Warner Bros would pose significant competition concerns owing to the combined company’s dominance in the streaming market.Warner Bros owns Discovery+, which is home to TNT Sports, and HBO Max, a major US streaming service that is scheduled to launch in the UK in March.Executives are also emphasising the impact of the deal on cinemas amid concerns that Netflix could reduce the number of films distributed for theatrical release.In addition to the meeting with Ms Nandy, Paramount has met with officials at the Competition and Markets Authority and regulator Ofcom.Mr Ellison also met cinema executives who are fearful that Netflix will cut Warner Bros’ theatrical investments.A source close to Paramount said the meetings were intended to build relationships after the Ellison family took control of the US studio in an $8bn deal last year.Paramount owns Channel 5, while it has also made a number of major films in the UK, including the latest instalment in the Mission: Impossible franchise.The planned takeover of Warner Bros will mark a major reshaping of Hollywood as traditional studios seek to build scale to compete in the cut-throat streaming era.Any deal will also have significant implications in the UK, where Warner Bros employs around 4,000 people. The company has made a raft of blockbusters in its Leavesden studios near Watford in recent years, including Barbie and Wonka.Paramount’s PR pushNetflix has played down competition concerns and insisted it is committed to releasing films in cinemas, though it has acknowledged that the regulatory review process could take up to 18 months.Paramount would itself face regulatory scrutiny over its plans to merge two of Hollywood’s major studios, though insiders said they were confident the proposed deal would clear any reviews.Mr Ellison and Paramount executives’ meetings form part of a broader charm offensive across Europe as the company seeks to shore up support from regulators in Brussels. Senior executives also recently met Emmanuel Macron, the French president, Bloomberg reported.The studio has tapped City PR firm Brunswick to help in its discussions, while US law firms Cravath, Swaine & Moore and Latham & Watkins are advising on the deal.Paramount’s lead financial advisers are Centerview Partners and bankers at RedBird Capital, the US private equity firm led by Gerry Cardinale, which is also the company’s second-largest shareholder.Mr Cardinale, who sits on Paramount’s board, is also thought to be working with Greenlight Group, a regulatory advisory launched late last year by Ali Nikpay, Daniel Gieve and Adam Atashzai.Mr Gieve is a former chief executive of the Government’s Office for Investment.Mr Atashzai also briefly held an advisory role in No10 under the Conservatives, while Mr Nikpay is a former partner at law firm Gibson Dunn.Paramount ramped up its campaign this week by suing Warner Bros in an effort to secure “basic information” that it said had not been shared with investors.It has also outlined plans to appoint directors to the Warner Bros board and fight a proxy battle against the Netflix deal.However, the company was dealt a setback on Thursday when a Delaware judge rejected a request to fast-track its lawsuit. Paramount has given Warner Bros shareholders until January 21 to accept its bid, though this deadline could be extended.Paramount and the Department for Digital, Culture, Media and Sport declined to comment.