Analysis of Why Tech Giants (Amazon, Google, Apple) Aren’t Bidding for WBD Amid Hostile Takeover Offers

On December 8, 2025, Paramount Skydance announced a hostile all-cash $108B ($30/share) bid for WBD, challenging Netflix’s earlier $82.7B (including debt, $27.75/share cash + stock) deal to acquire WBD’s streaming and studio assets. Despite WBD’s valuable IP and tech giants’ cash reserves, Amazon, Google, and Apple have stayed on the sidelines, a trend rooted in multiple interconnected factors [0][1].

WBD’s financial and operational baggage is a primary deterrent. The company carries ~$34.5B in gross debt, reported a Q3 2025 net loss of $148M (driven by intangible asset amortization and restructuring), and faces declining linear TV revenue. Inheriting these liabilities, alongside legacy cable networks, union negotiations, and regulatory scrutiny, would add significant complexity for tech firms, which typically prioritize agile, high-growth businesses [0].

Tech giants’ strategic focus on AI also diverts resources from content acquisition. Cumulative AI spending by Meta, Microsoft, Amazon, and Alphabet reached ~$325B in 2025, making AI a far higher priority than expanding content libraries [0]. For Apple, streaming (Apple TV) is not a core business—its revenue relies heavily on iPhones, iPads, and its lifestyle brand. Similarly, Google’s media focus centers on YouTube, its core platform, making WBD’s legacy assets redundant [0][2].

1. Winner’s Curse Risk
   : Bidding for WBD, especially at Paramount Skydance’s $30/share price, carries a high risk of overpaying for assets with declining long-term value (e.g., legacy cable), a concern echoed in the Reddit discussion [2].
2. IP Licensing Preference
   : Tech firms often find it cheaper and cleaner to license hit IP than to acquire entire legacy media stacks, avoiding the baggage of declining assets and regulatory hurdles [2].
3. Core Business Alignment
   : Streaming is not a strategic priority for Apple, while Google and Amazon already have established media assets (YouTube, MGM), reducing the need for WBD’s portfolio [0][2].

• Risks for Bidders
  : Any bidder (tech or traditional) faces the risk of inheriting WBD’s $34.5B debt, declining linear TV revenue, and regulatory scrutiny over media consolidation. The winner’s curse could result in overvaluation and long-term financial strain [0][2].
• Opportunities for WBD
  : The competing bids highlight the value of WBD’s IP, but tech firms do not see the potential return as sufficient to justify the legacy baggage [1].

• Current WBD Price
  : $27.41 (up 5% on December 8, 2025), with a 52-week high of $28.16 and a market cap of ~$67.9B [0].
• Bids
  : Netflix’s $27.75/share (cash + stock) for streaming/studio assets; Paramount Skydance’s $30/share all-cash hostile bid for all WBD assets [1].
• Tech Giants’ Priorities
  : AI investment (~$325B cumulative in 2025), core businesses (iPhones for Apple, YouTube/search for Google, e-commerce for Amazon) [0].
• WBD’s Challenges
  : $34.5B gross debt, Q3 2025 net loss of $148M, declining linear TV revenue [0].