Paramount Skydance jolted Hollywood and Wall Street on Monday with a stunning $108.4 billion hostile takeover bid for Warner Bros Discovery, an all-out attempt to topple Netflix’s leading offer and pull one of the world’s biggest entertainment libraries into its orbit.
The move blew open what had seemed, as of late last week, like a settled outcome. Netflix was declared the winning bidder on Friday after securing a $72 billion equity deal for Warner Bros Discovery’s studio assets, HBO, Max, and the DC Comics portfolio.
Paramount’s aggressive intervention ensures the saga is nowhere near done. Instead of a clean end to a fierce bidding race between Paramount, Netflix, and Comcast, the battle has swung into a new phase featuring political intervention, shareholder pressure, regulatory storm clouds, and long-simmering industry rivalries.
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Netflix’s deal remains the formal leader, yet it comes with a $5.8 billion break-up fee and a mountain of regulatory hurdles. U.S. President Donald Trump said over the weekend that the planned sale “could be a problem” because of the amount of market power Netflix would gain. His concern was echoed by lawmakers from both parties, along with Hollywood unions that fear another merger could fuel sweeping job losses in a sector already cut down by streaming-era consolidation.
Paramount’s bid, though larger, isn’t free from its own concerns. A merger between Paramount and Warner Bros would create a single studio with enormous sway over theatrical releases, broadcast rights, and global streaming. The consolidation wave has already thinned opportunities in production, visual effects, and distribution, so anxiety about additional layoffs remains high.
Even so, Paramount believes it has a better case than Netflix. The company had already raised its offer to $30 per share last Thursday, according to sources who spoke to Reuters, though Warner Bros Discovery’s board still questioned whether Paramount had fully secured its financing. Paramount also accused Warner Bros of running an unfair sale process and preselecting Netflix as the winner. Executives at Warner Bros had reportedly described the Netflix deal as a “slam dunk” while speaking unflatteringly about Paramount’s offer.
Industry analysts say the situation is now set for a drawn-out fight. Emarketer senior analyst Ross Benes said, “Netflix is in the driver’s seat but there will be twists and turns before the finish line. Paramount will appeal to shareholders, regulators, and politicians to try to stymie Netflix. The battle could become prolonged.”
Paramount CEO David Ellison drove that point home on Monday, saying there is an “inherent bias” working against his company.
“We will be the largest investor in this deal. We’re literally sitting here today because we are fighting for our shareholders, and we’re also fighting for the shareholders of Warner Bros Discovery,” he told CNBC.
Paramount’s bid draws strength from Ellison’s financial backing. His father, Oracle co-founder Larry Ellison, remains one of the world’s wealthiest individuals and maintains warm ties with the Trump administration. That political proximity may matter, given that Trump has openly questioned whether the Netflix deal should be allowed at all.
On Sunday night in Washington, Trump told reporters, “They have a very big market share. And when they have Warner Brothers, you know, that share goes up a lot. It could be a problem.”
He added that he intends to take part in the review process. Trump also said Netflix CEO Ted Sarandos “made no guarantees” about the deal when he visited the Oval Office last week. A senior administration official later told CNBC that the White House views the agreement with “heavy skepticism.”
The concern is rooted in the sheer scale of what Netflix would gain. Exclusive control of HBO, DC Comics, Warner Bros Pictures, Warner TV, and a globe-spanning IP library would give Netflix near-total command of the premium-content landscape. Gaming is another crucial piece. Netflix has been pushing into gaming with modest progress, and analysts say Warner’s characters and franchises would instantly strengthen its ambitions.
Morningstar analysts warned that the combined company would face overlap issues and that its streaming revenue could fall unless Netflix dramatically raises subscription prices or runs separate streaming platforms. Neither option is considered attractive.
Netflix has tried to lower the temperature. Co-CEO Ted Sarandos said the company is “highly confident” in the regulatory process and insisted the deal “will drive value for consumers, shareholders and talent.” Even so, the atmosphere in Washington is tense. Senator Elizabeth Warren called the deal an “anti-monopoly nightmare,” while other lawmakers said the sale risks creating a new era of entertainment-sector concentration.
Paramount is capitalizing on that climate. The company warned Warner Bros Discovery’s legal team that the Netflix sale might “never close” because of the sheer regulatory gauntlet it must pass, according to a report in The Wall Street Journal.
Comcast had also been a contender but withdrew after being outbid. Meanwhile, Warner Bros Discovery has its own restructuring plans in motion. The company intends to spin out Discovery Global, a new entity that would hold CNN, TNT Sports, and core Discovery channels.
The entire saga has left the industry in a state of suspended animation. Media consolidation has already reshaped the sector, swallowing legacy studios, collapsing independent production houses, and reshuffling talent deals. Hollywood workers fear another mega-merger will tighten budgets even further.
What once looked like a straightforward auction will now stretch into a political and corporate contest involving the White House, regulators, Wall Street, Hollywood unions, and competing tech empires. Netflix may still close its deal, but Paramount’s hostile offer has ensured that Warner Bros Discovery’s fate is now the most volatile story in modern entertainment.