In December 2025, the international media community was left reeling by a corporate showdown: Paramount Skydance made a hostile takeover bid for Warner Bros. Discovery (WBD mere days after Netflix struck a deal for key Warner assets.
This hostile bid added even more to what promised to be one of the biggest media deals of the last decade. It was no less than a challenge to Netflix’s acquisition of the studios and streaming divisions of Warner Bros., which Paramount was also pursuing, as it essentially turned what could have been a negotiated acquisition into more of a high-stakes company showdown between the parties.
Background: Netflix’s Agreement with Warner Bros.
Earlier in December, Netflix reached an agreement with Warner Bros. Discovery for the acquisition of its production house, including Warner Bros. film production houses, as well as HBO/HBO Max and other intellectual properties such as Harry Potter, DC Comics, and Game of Thrones. This acquisition was approximately $82.7 billion.
However, this acquisition excluded Warner’s cable and news divisions, including properties such as CNN, TNT, and TBS, which WBD intends to spin off into a new company as a result of its acquisition of Warner Bros. Discovery.
Paramount’s Hostile Takeover Offer
On 8 December 2025, Paramount Skydance, the result of the merger between Paramount Global and Skydance Media, initiated an unsolicited, hostile takeover bid for the entirety of Warner Bros. Discovery. This proposal consisted of $30 per share in cash, amounting to approximately $108.4 billion in enterprise value, exceeding Netflix’s cash bid for the purchase of WBD by more than $18 billion. This is characteristic of an unsolicited takeover bid, as it is submitted directly to the company’s shareholders, rather than being approved by the board of directors.
It also involved support from key investors, including the Ellison family and RedBird Capital, as well as sovereign funds from the Middle East. Additionally, it involved significant debt financing commitments from Bank of America, Citigroup, and Apollo Global Management.
Contrary to Netflix’s more complex plan, which involved separating its linear cable assets, as seen with Warner, Paramount took a more direct approach that was potentially more appealing to investors seeking clarity. This is also a reflection of Paramount’s long-term plan to ensure that it remains relevant in a market where mid-size production companies face challenges in keeping up with the likes of global streamers.
Why Paramount’s Approach is ‘Hostile’
A hostile takeover occurs when a bidder acquires control of a target company without the target’s management’s consent. In this respect, it is worth noting that the board of Warner Bros. Discovery expressed support for Netflix’s proposal. Paramount argued that the sales process was tilted in favour of Netflix, and as such, it recommended that the WBD board consider its better offer, which was an all-cash bid. The management of Paramount, led by David Ellison, appealed to investors to shift their loyalty.
Industry and Political Implications
This was not a purely financial battle- it was steeped in strategic as well as political undertones. Already, antitrust lawyers in the U.S. as well as other jurisdictions are scrutinising the Netflix takeover for potential antitrust issues, given its dominance of the streaming market. Paramount argued that its group could encounter less government regulation, which would put it in the same context as other media conglomerates. Politicians, such as former U.S. President Donald Trump, have weighed in on the implications of the Netflix-WBD merger for the media landscape, adding further uncertainty to the discussion.
Reaction to the announcement in the markets
Financial markets reacted swiftly. Netflix shares momentarily fell following Paramount’s bid announcement, indicating that investors were not comfortable with the escalating price tag, as well as the complications entailed in negotiating with Warner Bros. Discovery. On the other hand, shares for Warner rose as the potential for a “bidding war” fueled hopes of reaping a better reward for stakeholders.
Now the big question is straightforward: Will Paramount be able to convince Warner shareholders to support their bid, or will Netflix make a better offer to save its own deal? Currently, the Warner Bros. Discovery board is aligned with Netflix, making it challenging for Paramount to persuade shareholders without the board’s support.
Impact on the Streaming Landscape
Apart from the stock exchange, the battle for Warner Bros. Discovery could also revolutionise the streaming media space itself, where scale is quickly becoming the key to survival. Today, Netflix is far ahead of the competition with over 300 million subscribers globally. Amazon Prime Video is second, followed closely by Disney+ and Hulu. Currently, HBO Max and Discovery+, streaming offerings from Warner Bros. Discovery, rank fourth with a total of approximately 128 million subscribers, while Paramount+ ranks fifth with about 78 million subscribers, according to King.
When the dust settles, the ultimate owners of Warner Bros. would not only get excellent production facilities, but more importantly, a considerable advantage in the battle for scale in the increasingly consolidating streaming landscape would fall into their laps. However, the possibility of further mergers has raised concerns about political and regulatory implications.
Those who oppose the acquisition believe that Netflix merging with Warner Media would be too powerful for one group to wield. Massachusetts Senator Elizabeth Warren warned that Netflix’s acquisition of Warner Media could “create one giant media giant with control of almost half of the streaming market.” Netflix is likely to defend itself against these allegations by promoting a more expansive definition of the online streaming industry. As cited by The Guardian, Netflix is expected to argue that services like YouTube, with their massive followings despite differences in their respective business models, should be taken into account when calculating their shares of the respective markets.
What Comes Next
However, whether Paramount succeeded with its hostile takeover or was only forced to sweeten the Netflix offer, the situation amidst the streaming wars is revealing a truth that is about to shift into a phase where mergers are no longer optional but structural. The escalating cost of content, declining growth rates of subscribers, and continued governmental regulations are forcing firms into fewer, larger, and more powerful players.
Whichever company ultimately emerges victorious in this round of bidding, the new owners of Warner Bros. Discovery are poised to play a pivotal role in shaping the future of legendary properties, high-end TV programming, and the global streaming landscape.
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