Warner Bros Discovery Sale: Netflix and Paramount Skydance Among Potential Buyers Amid Industry Upheaval
Warner Bros Discovery is reportedly up for sale amid a period of decline and a production slump affecting Hollywood post-pandemic. Potential buyers include streaming giant Netflix and the Paramount Skydance consortium, which has made a hostile bid valued at approximately $108 billion. The bid from Paramount Skydance is backed by financial support from Saudi Arabia, Abu Dhabi, Qatar, and a fund initiated by Jared Kushner. The sale could involve the entire studio or a division of its various assets.
If Netflix secures the deal, it would acquire Warner Bros' flagship divisions, including the historic 102-year-old studio, HBO, and its extensive library. However, legacy networks such as CNN, TNT, and Discovery might be sold to another buyer. Netflix has pledged to maintain the studio's operations and theatrical release schedules. Nevertheless, the bid has raised concerns regarding potential censorship and government overreach, especially given President Trump's public calls for CNN's sale.
This dispute reflects a broader upheaval in Hollywood following a production downturn during 2023–2024 after a boom year in 2022, intensified by mergers and significant job losses. Notably, Skydance had previously acquired Paramount in this reshaping landscape. Meanwhile, Warner Bros Discovery's CEO, David Zaslav, earned $51.9 million in the last year, even as the company posted losses exceeding $11 billion and endured a roughly 7% drop in stock value.
Industry observers view Netflix as a disruptive force challenging traditional Hollywood norms. Some also point to Netflix's restoration efforts, such as the renovation of the Egyptian Theatre, as signs of commitment to preserving entertainment heritage and positive stewardship.
