The battle for control of Warner Bros Discovery climbed to its highest point last Monday, after Paramount Skydance launch a hostile offer 108.4 billion dollarschallenging the preliminary agreement that Netflix announced just on Friday by the studios, HBO, HBO Max and the group’s entire historical catalog.
The operation, one of the largest the entertainment industry has seen in more than a decade, today faces an uncertain scenario marked by political pressures, regulatory scrutiny and a strong media war.
Netflix’s offer: a deal for $72 billion
Netflix struck the first blow by announcing that it had reached an agreement to acquire the Warner Bros. Discovery film and television studios, as well as HBO and its service streaming.
The offer, valued at $72 billion in equity (82.7 billion in enterprise value), surpassed previous proposals from Paramount and Comcast during weeks of negotiations.
Their offer included about $28 per share, which eclipsed Paramount’s previous proposals, which were around $24 per share. Netflix also agreed to pay a $5.8 billion termination fee if the deal does not win regulatory approval.
Ted Sarandos, co-executive director of the platform, assured that the union “will define the next century of narratives” and promised to keep Warner releases in theaters and improve the catalog without raising costs for users.
Paramount’s hit: 108.4 billion
Paramount’s response was not long in coming. This Monday, the study led by David Ellison submitted a hostile bid for all of Warner Bros. Discovery, valued at $108.4 billion, equivalent to $30 per share, and well above the deal Warner would have preferred with Netflix.
In addition, Paramount accused Warner of favoring Netflix, abandoning a competitive process and having “predetermined” the winner. He even sent internal letters questioning the fairness of the sale.
Paramount’s bid is also boosted by the Ellison family’s resources (backed by the fortune of Oracle co-founder Larry Ellison) and close political ties to President Donald Trump’s administration.
Trump enters the game: political pressure and regulatory doubts
The business dispute took a political turn when donald trump declared that the Netflix-Warner Bros union could represent market concentration problems. In recent speeches, the president stated that he himself will participate in the government’s decision on whether to approve the agreement, something unusual.
Trump has shown a preference for an exit that ensures new owners for CNN, a network with which he has a long conflict. That point could favor Paramount, whose offer includes all of WBD’s assets, while Netflix plans to sell CNN before closing the purchase.
In addition, the White House faces pressure from Democratic and Republican lawmakers, as well as Hollywood unions, who fear job cuts, reduced production and higher prices for consumers.
How Wall Street reacted: punishment for Netflix, boost for Paramount
The bidding war has already moved the market:
- Netflix shares fell more than 4% this Monday, marking its fourth day of losses.
- Warner Bros Discovery rose 3.59% driven by the expectation of a higher bid.
- Paramount Global rose 9.28% after announcing its counteroffer.
Analysts at GBM and Morningstar warn that the Warner purchase would further consolidate Netflix’s power by integrating production, distribution and streaming, raising antitrust fears in the United States and Europe.
What’s at stake: franchises, audiences and a historic library
Beyond the numbers, the dispute revolves around one of the most valuable libraries in Hollywood. The winner will control franchises as:
harry potter
Game of Thrones
DC Comics
batman
The Lord of the Rings (New Line Cinema)
Dune
Friends
The Big Bang Theory
Looney Tunes
Classics like Casablanca, The Sopranos, Citizen Kane, The Wizard of Oz
In addition, the property would allow the development of new projects in video games, live entertainment and multi-platform ecosystems, an area in which Netflix is aggressively trying to expand.
The question remains open: who will stay with Warner Bros?
