Paramount Skydance has launched a hostile $108.4 billion bid for Warner Bros Discovery, moving to upend Netflix’s newly struck agreement and escalate one of the decade’s most consequential battles for Hollywood’s crown jewels.
The move arrives days after Netflix emerged from a weeks-long bidding war with a $72 billion equity deal for Warner Bros Discovery’s TV, film and streaming assets — an offer valued at $82.7 billion including debt and carrying a $5.8 billion break-up fee from Netflix. The streaming giant’s bid, already drawing bipartisan political heat and pushback from Hollywood unions, is expected to face significant regulatory scrutiny.
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Paramount Skydance’s offer is a last-ditch attempt to assemble a media powerhouse capable of challenging Netflix and deep-pocketed tech rivals such as Apple that have extended their reach into entertainment. The company submitted multiple proposals starting in September but was rebuffed, according to people familiar with the talks.
In a letter to Warner Bros Discovery, Paramount Skydance questioned the integrity of the process and alleged the seller abandoned a fair auction by predetermining Netflix as the winner. That complaint followed reports that Warner Bros Discovery’s management characterized the Netflix agreement as a “slam dunk” while casting Paramount Skydance’s terms in a negative light.
Paramount remains one of Hollywood’s legacy studios, though its box office returns have been uneven in recent years, with intermittent franchise wins offset by stretches in which its slate trailed Disney, Universal and Warner Bros in U.S. market share. Analysts nevertheless view Paramount Skydance as a credible buyer for Warner Bros Discovery, citing CEO David Ellison’s access to capital — backed by his father, Oracle co-founder Larry Ellison — and close ties to the Trump administration.
President Donald Trump told reporters the prospective Netflix–Warner Bros Discovery combination could raise market-share concerns and said he would have a say on the deal. Bloomberg News reported Trump met with Netflix co-CEO Ted Sarandos in mid-November and conveyed that Warner Bros Discovery should sell to the highest bidder.
Regulatory and political crosscurrents are already swirling. Lawmakers from both parties and Hollywood labor groups have criticized Netflix’s bid, warning of potential job losses and higher consumer prices. Morningstar analysts said the merged company would have “substantial overlap” and projected combined streaming revenue could decline unless Netflix doubles prices or runs separate platforms — scenarios the firm does not expect.
Seeking to allay competition fears, Sarandos has said the deal would “drive value for consumers, shareholders and talent,” and that Netflix is highly confident in the regulatory process.
Strategically, analysts say Netflix’s motivation centers on securing exclusive, long-term control of premium intellectual property while reducing reliance on external studios as it expands into gaming, live entertainment and broader consumer ecosystems. Warner Bros Discovery’s vast IP library could accelerate Netflix’s push into games by providing instant brand recognition, merchandising opportunities and audience reach.
The Paramount Skydance offer now forces a choice for Warner Bros Discovery’s board: proceed with a politically fraught and regulatorily complex sale to Netflix, or pivot to a higher-priced hostile bid that could invite a different set of antitrust and market-power questions. Either path promises months of legal and regulatory review, with the broader entertainment industry — amid consolidation pressures and shifting consumer habits — bracing for another seismic reshuffle.
Warner Bros Discovery, Netflix and Paramount Skydance did not immediately respond to requests for comment.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
