Paramount's $108B Bid Aims to Derail Netflix's WB Takeover
A massive corporate battle is brewing as one entertainment giant launches a hostile takeover attempt to block a rival's acquisition of a legendary studio. With billions on the line and accusations of unfair dealings, the future of Hollywood hangs in the balance.
The entertainment industry is buzzing over a potential acquisition of Warner Bros. by Netflix, a move that could drastically alter the landscape of traditional movie releases. But another major player, Paramount, has stepped into the ring with a dramatic counter-move. After seeing its previous offers rejected, Paramount Skydance is now attempting a hostile takeover, presenting a deal that CEO David Ellison argues is far better than what the streaming service has put on the table.
A Superior Bid or a Desperate Move?
Paramount's all-cash offer comes in at a staggering $108.4 billion enterprise value, significantly higher than the streamer's $82.7 billion proposal, which also accounts for debt. A key distinction between the two offers lies in their scope. The Ellison-backed studio is looking to acquire all of Warner Bros. Discovery, including its extensive television operations.
In contrast, the streaming giant is only interested in purchasing Warner Bros.' film and streaming divisions. By taking its bid directly to the shareholders, the Ellison-backed studio has signaled it won't back down easily, making a new merger a very real possibility.
Claims of a Tainted Deal
Once news broke that the agreement between the streamer and WB was progressing, Paramount didn't hesitate to voice its objections. The company dispatched a letter to WBD CEO David Zaslav, asserting that the entire sales process was compromised by conflicts of interest within management. The letter went on to challenge the legitimacy of the deal, describing it as inequitable and lacking the basic elements of a fair transaction.
Paramount alleged that the studio seemed to have a preferred bidder from the outset, skewing the process unfairly.
It has become increasingly clear, through media reporting and otherwise, that WBD appears to have abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to stockholders, and embarked on a myopic process with a predetermined outcome that favors a single bidder
It's still uncertain if WB will consider this aggressive new offer. Any merger of this magnitude would also require clearance from the Department of Justice to ensure it complies with antitrust laws.
A Political Wildcard Enters the Fray
Adding another layer of complexity, some believe Donald Trump might step in to block the streaming service from acquiring the iconic studio, citing his supposed history with Paramount's leadership. When asked about the potential merger at the Kennedy Center Honors, Trump acknowledged that the streamer's large market share "could be a problem."
However, he also had positive things to say about Ted Sarandos, who had met with him prior to the bid. Trump called Sarandos fantastic and indicated he would be involved in the review process.
Well, that’s got to go through a process, and we’ll see what happens. It’s Netflix and great company and they’ve done a phenomenal job.
Regardless of the outcome, the situation leaves fans in a state of uncertainty. This is particularly unfortunate after the studio delivered an exceptional lineup of films in 2025. Many hope that if the streaming deal does proceed, the cherished experience of going to the movies will not be lost.