Inside the Battle for Warner Bros: Netflix and Paramount Skydance Compete for $82.7 Billion Studio
Netflix has offered to acquire Warner Bros Discovery's studio and streaming assets for $82.7 billion. Meanwhile, Paramount Skydance has made a hostile bid for the entire company valued at about $108 billion, backed by allies of former President Donald Trump. Paramount's bid would give it control of Warner Bros Discovery's broader assets.
President Trump has publicly signaled involvement in the merger review process and suggested conditions such as acquiring Warner Bros Discovery's TV channels and making changes at CNN. However, White House officials state there is no fixed position on the matter.
Paramount's offer is supported by tech entrepreneur Larry Ellison and managed by David Ellison, with Jared Kushner's Affinity Partners acting as an external funder. Both Netflix and Paramount have hired officials with connections to Trumpworld to potentially facilitate regulatory approval—Paramount recruited Makan Delrahim, and Netflix brought on Virginia Boney Moore.
Regulators, including the Department of Justice's antitrust division led by Gail Slater and state attorneys general, particularly in California, are expected to scrutinize the deals intensely. Industry experts warn that a merger involving Warner Bros Discovery and a major buyer could raise substantial antitrust concerns, potentially leading to blockage or prolonged regulatory challenges. The cited precedent of the failed 2017 AT&T-Time Warner merger highlights the difficulties such deals face.
Warner Bros Discovery is set to evaluate Paramount's proposal and provide a shareholder recommendation within ten days. The transaction is not considered closed yet.
These competing deals could reshape Hollywood and the global media landscape significantly, raising concerns about reduced competition in both streaming services and news media.
