A high-stakes corporate war is erupting in Hollywood, with two of the biggest names in entertainment—Netflix and Paramount—fighting to acquire the legendary Warner Bros Discovery. The outcome will reshape the media landscape for years to come.
For months, Paramount Global, backed by the deep pockets of the billionaire Ellison family, has been trying to woo Warner Bros. The struggling media giant has found it difficult to keep pace with streaming leaders like Netflix and Disney, making it a prime takeover target. However, Warner Bros initially rejected Paramount’s advances. Instead, the company announced a deal to sell its crown jewels—its storied film studio and its profitable streaming division—to its rival, Netflix.
Refusing to back down, Paramount’s CEO, David Ellison, launched a hostile bid. This means he is bypassing Warner Bros’ management and taking his offer directly to the company’s shareholders in an attempt to force a deal.
The Two Competing Offers
The proposals on the table are vastly different in scope and strategy.
- Netflix’s Plan: The streaming giant is offering $82.7 billion (including debt) to acquire Warner Bros’ core assets: the film studio (home to iconic brands like Warner Bros, New Line Cinema, and DC) and the HBO Max streaming service. Under this plan, the remainder of Warner Bros Discovery—which includes its legacy cable TV networks—would be spun off into a separate, independent company. Netflix has recently upped its offer to $27.75 per share in cash, moving away from an earlier proposal that included stock.
- Paramount’s Counter: The Ellisons want it all. They are proposing to buy the entire Warner Bros Discovery company for a total value of $108.4 billion, including its traditional pay-TV networks (like CNN, Food Network, and TNT). This all-cash offer of $30 per share is designed to provide shareholders with immediate and certain value. To make their bid even more attractive, Paramount has also offered to cover the hefty $2.8 billion breakup fee Warner Bros would have to pay Netflix if their deal falls through.
Warner Bros shareholders are scheduled to vote on the Netflix plan on March 20th. In the meantime, the company has agreed to briefly reopen talks with Paramount to see if they will increase their offer.
Why the Frenzy?
For both suitors, the prize is Warner Bros’ unparalleled content library, which spans nearly a century of cinematic history. From classics like Casablanca and Looney Tunes to modern blockbusters like Harry Potter and Superman, and prestige television like The Sopranos and Succession, the archive is one of the most valuable in the world.
- For Netflix: Acquiring this library and the studio that created it would further cement its dominance. With over 300 million subscribers already, adding Warner Bros’ output would supercharge its movie offerings and, crucially, prevent a competitor from getting their hands on that content.
- For Paramount: The motivation is about survival and scale. David Ellison, who recently merged his Skydance studio with Paramount, sees Warner Bros as the perfect partner to create a true rival to industry titans like Netflix and Disney. A merger would instantly boost its streaming business, adding HBO Max’s 120 million subscribers to Paramount+’s 79 million. It would also give its struggling traditional TV networks (like CBS, Nickelodeon, and Comedy Central) more leverage in negotiations and open up significant cost-saving opportunities.
Who Has the Upper Hand?
Predicting a winner is difficult, as both deals face significant hurdles, primarily from antitrust regulators in the US and Europe.
- Regulatory Hurdles: Netflix’s plan faces criticism that it would give an already dominant player excessive power over the industry, potentially harming actors, writers, and even local cinemas. A merged Paramount-Warner Bros, however, would control a massive slice of sports and children’s programming, which could raise alarms for advertisers and TV distributors. Putting CBS and CNN under the same roof also invites intense scrutiny over media diversity and ownership.
- The Political Factor: The political climate, particularly the relationship between the Ellison family and President Donald Trump, could play a role. Larry Ellison, David’s father and a tech billionaire, is a major Republican donor. Trump has previously criticized CNN and suggested it be sold as part of any deal—a condition Paramount’s bid for the entire company could satisfy. While Trump has praised the Ellisons in the past, he has also recently attacked Paramount over a news segment, and previously noted concerns about Netflix’s sheer size. Ultimately, he has stated he will leave the decision to the Justice Department.
What Does This Mean for Viewers?
The impact on consumers remains unclear. For now, both scenarios have pros and cons. If Netflix succeeds, it could bolster its library and potentially raise prices. If Paramount wins, viewers might end up paying for one service instead of two (if the streamers merge), potentially saving money. However, with over 70% of HBO Max’s US customers also subscribing to Netflix, many viewers may simply see their favorite content move from one app to another.
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