Netflix looked set to secure Warner Bros Discovery just days ago, but the situation has dramatically shifted after Paramount and Skydance launched a surprise hostile takeover bid valued at USD 108.4 billion. The move has disrupted the USD 72 billion equity agreement that Netflix and Warner Bros Discovery had tentatively reached on Friday after a prolonged bidding battle.
The new offer from Paramount Skydance is all-cash, priced at USD 30 per share and totalling USD 82.7 billion including debt, triggering a USD 5.8 billion breakup fee that Warner Bros would owe Netflix if it abandons the earlier agreement. If successful, the acquisition would merge Paramount and Warner Bros into a single entertainment powerhouse capable of competing directly with the world’s biggest streaming and media conglomerates.
Paramount had been bidding for Warner Bros Discovery since September, but its earlier proposals were repeatedly rejected. The company has now accused Warner Bros of running an unfair sale process that favoured Netflix—pointing to internal comments where Warner executives reportedly referred to the Netflix offer as a “slam dunk” while downplaying Paramount’s bid.
Hollywood analysts say the hostile offer has instantly reopened the contest. Paramount’s financial backing is substantial, powered by Skydance CEO David Ellison and the wealth of his father, Oracle co-founder Larry Ellison. Industry observers also note Ellison’s strong ties to the Trump administration, which could influence regulatory sentiment.
The political winds around the deal are already visible. US President Donald Trump commented that a Netflix–Warner Bros merger “could raise market share concerns” and publicly stressed he would “have a say on the deal.” Bloomberg previously reported that Trump met Netflix co-CEO Ted Sarandos in November and advised him that Warner Bros should be sold to the highest bidder.
If Paramount succeeds, the resulting merged studio would position itself as a direct challenger to Netflix, Disney, and Amazon in both theatrical and streaming markets. If Netflix prevails, it would instantly become the world’s most powerful entertainment platform, acquiring massive franchises including Harry Potter, DC, Game of Thrones, and Friends.
With a hostile takeover now underway, the Warner Bros sale is expected to face intense antitrust scrutiny, aggressive lobbying, and possible political intervention. The bidding war is far from over, and the media industry is bracing for one of the most consequential corporate battles in its history.
