Paramount has launched a hostile takeover bid to acquire Warner Bros Discovery, challenging Netflix’s recently announced deal and sparking a fierce bidding war in Hollywood’s media industry. Paramount’s all-cash offer stands at $30 per share. Unlike Netflix’s proposal, Paramount emphasizes greater stability and regulatory certainty, including cable networks such as CNN, TNT, TBS, and Discovery.
Paramount’s chairman and CEO, David Ellison, urged Warner Bros shareholders to consider “our superior all-cash offer,” describing Netflix’s proposal as “inferior and uncertain.” The Ellison family, which controls Paramount, maintains close ties with U.S. President Donald Trump, raising questions about potential political implications. Trump himself commented that Netflix’s acquisition of Warner Bros could create a problem by consolidating a huge share of the film and television market.
Warner Bros has produced numerous cinematic classics over the decades, including Casablanca and Citizen Kane, as well as recent hits like The Sopranos, Game of Thrones, and the Harry Potter series. Paramount stated that a merger would combine its portfolio—including Paramount Pictures, CBS, Nickelodeon, and Paramount+—with WBD’s assets such as HBO Max and major sports rights, potentially generating over $6 billion in cost savings while maintaining theatrical releases and increasing content investment.
Netflix has faced criticism within parts of Hollywood for its reluctance to prioritize theatrical releases, disrupting traditional industry practices. Paramount, by contrast, emphasizes the importance of maintaining a strong theatrical strategy. Following the announcement, Warner Bros Discovery shares surged more than 7% on Monday, while Netflix shares fell over 2%.
Commentary:
The acquisition battle between Paramount and Netflix highlights both the competitive and consolidating trends in the current media landscape, with an added political dimension. Paramount’s alliance with Trump has drawn attention to its potential influence on policy and the media market, whereas Netflix, as a tech-driven company, represents the emerging power of digital platforms. The competition involves not only financial and content consolidation but also the reshaping of global media ownership and influence.
For Warner Bros, the choice of acquirer will directly affect future production strategies, theatrical distribution, and streaming platform operations. Theatrical releases remain crucial for Hollywood’s creative industry, impacting both cultural prestige and industry health. Paramount’s commitment to maintaining theatrical releases could make it more appealing to industry stakeholders.