The gloves are officially off in the battle for Hollywood's crown jewels. Just days after streaming behemoth Netflix seemingly clinched victory in the weeks-long bidding war for Warner Bros Discovery, a colossal, last-ditch counter-strike has landed: Paramount Skydance (PSKY.O) has launched a hostile bid valued at a staggering $108.4 billion.
This unprecedented move throws the entire media world into chaos, transforming what was expected to be a settled mega-merger into a brutal corporate siege. The target is a company that controls priceless intellectual property, including the HBO back catalogue and the DC Comics film franchises, making the eventual owner the most powerful player in global entertainment.
Netflix, which had emerged as the winner on Friday, secured a $72 billion equity deal for Warner Bros Discovery's coveted TV, film studios, and streaming assets. However, Paramount's all-cash offer bypasses the board entirely, going straight to the shareholders and offering a flat $30 per share for the entire company.
The drama is no longer confined to the boardroom. Netflix's offer, which includes a formidable $5.8 billion break-up fee, was already under intense scrutiny. It has drawn sharp criticism from bipartisan lawmakers and Hollywood unions alike, who are raising serious concerns that a combined Netflix-Warner Bros could lead to mass job cuts and, crucially, higher prices for consumers trying to access the content.
The entire process is now set for a prolonged, messy fight involving regulators, shareholders, and political figures, ensuring the jockeying for control of Warner Bros Discovery will not come to a swift conclusion.
The Hostile Battle for Warner Bros Discovery
The animosity between the two competing bidders is now public knowledge. Paramount's latest salvo was accompanied by a letter to Warner Bros, questioning the sales process itself and alleging that the company had 'abandoned a fair bidding process' and had 'predetermined Netflix as the winner.'
This follows reports that Warner Bros' management had called the Netflix deal a 'slam dunk' while, perhaps carelessly, speaking negatively about Paramount's offer behind closed doors.
Paramount CEO David Ellison did not mince his words when speaking to CNBC on Monday, claiming there was an 'inherent bias' against his company in the bidding. 'We will be the largest investor in this deal,' Ellison stated. 'We're literally sitting here today because we are fighting for our shareholders, and we're also fighting for the shareholders of Warner Bros Discovery.'
This deep-pocketed confidence stems from the vast wealth and influence backing Paramount. Many industry experts view the company as the natural candidate for the acquisition, given the financial muscle behind Ellison—his father, Larry Ellison, is the Oracle co-founder and the world's second-richest person, maintaining close ties with the Trump administration.
Paramount's bid is a gamble, one rooted in creating a unified media powerhouse capable of truly challenging the dominance of Netflix and Silicon Valley giants like Apple that have ventured into media.
While Paramount is one of Hollywood's major studios, its box office record has been somewhat uneven, with occasional franchise wins—like Mission: Impossible—offset by periods where its slate has trailed Disney, Universal, and Warner Bros in US market share. This acquisition is seen as a necessary, if brutally aggressive, correction.
Political Heat and the Regulatory Peril for Warner Bros Discovery
As the corporate drama unfolds, a parallel political firestorm is gaining intensity in Washington D.C. US President Donald Trump himself raised questions about the Netflix offer over the weekend, making it clear that the acquisition of such a major cultural force would not proceed without serious scrutiny from the White House.
Adding to the complexity, Bloomberg News reported that Trump had met Netflix co-CEO Ted Sarandos in mid-November, telling the executive that Warner Bros Discovery should sell to the highest bidder.
This suggests a willingness to insert the administration directly into the merger review process, a move that legal observers have called 'unprecedented'. The perception of political favouritism adds an unusual element of risk to the competition.
Both bids face regulatory hurdles. While Paramount's all-in bid for the entire company could lead to concerns over its dominant position in the studio business, Netflix's acquisition faces intense antitrust opposition regarding the potential consolidation of the streaming market.
Analysts note that Netflix's motivation stems from securing exclusive, long-term control over premium intellectual property, like Harry Potter and Game of Thrones, in a bid to reduce reliance on external studios as it expands into gaming and broader consumer ecosystems.
As one eMarketer senior analyst, Ross Benes, remarked: 'The Warner Bros Discovery acquisition is far from over. Netflix is in the driver's seat but there will be twists and turns before the finish line. Paramount will appeal to shareholders, regulators, and politicians to try to stymie Netflix. The battle could become prolonged.'
The only certainty now is that the outcome will profoundly reshape the entertainment landscape for years to come.
