Decoding the Hollywood Takeover: Paramount’s $108 Billion Counteroffensive Against Netflix for Warner Bros. Discovery

Hollywood is no stranger to major industry shifts, but few corporate disputes have moved as swiftly or drawn as much attention as the battle that unfolded in late 2025 over Warner Bros. Discovery (WBD). What began as CEO David Zaslav’s effort to stabilize a weakened media company quickly escalated into a high stakes bidding contest involving Netflix, the reenergized Paramount Skydance, and scrutiny from U.S. regulators.

By year’s end, WBD had become the single most contested asset in global entertainment, the target of a $72 billion deal from Netflix and, only days later, a far more aggressive $108.4 billion hostile takeover bid from Paramount Skydance. The ferocity of the competition reflects a broader truth: in an industry defined by IP, global reach, and platform economics, no asset carries more strategic weight than Warner Bros. The battle also highlighted the core pressures shaping today’s entertainment landscape, from the push for scale and stronger streaming economics to the growing importance of long-term IP ownership. 

A Restructuring That Sparked a Bidding War 

The origins of the saga stretch back to WBD’s prolonged decline following the 2022 WarnerMedia–Discovery merger. Burdened by tens of billions in debt, eroding cable revenues, and a challenging transition to streaming, WBD had failed to deliver on its promise of scale. By mid-2025, it became clear that Zaslav’s original consolidation strategy was not working. In June, he reversed course dramatically, announcing that the company would be split into two publicly traded entities: one housing Warner Bros.’ film, TV, and streaming businesses, including HBO, Max, DC Studios, and the iconic Warner Bros. Pictures, and another containing the legacy cable networks such as CNN, TNT Sports, Discovery, and Discovery+. 

The move was intended to simplify WBD’s structure and unlock value for shareholders. Instead, it effectively placed a “For Sale” sign over the company. By October, after months of quiet speculation, WBD confirmed it was open to both partial and full acquisition offers. That announcement immediately activated Hollywood’s most powerful bidders. 

Three Buyers, Three Strategies, And Why All Roads Led to Warner Bros. 

Paramount Skydance, led by David Ellison, was the first to approach WBD, fresh off its $8 billion merger with Paramount Global. As part of its broader push to rebuild the studio, Paramount made a series of unsolicited offers, one around $60 billion, with Ellison personally visiting David Zaslav’s home to make the case. For Paramount, acquiring Warner Bros. would complete its vision of a modern Hollywood mega-studio, combining the Paramount and CBS libraries with Skydance’s production engine and Warner Bros.’ deep IP catalogue. With control of HBO and DC, Paramount would gain powerful leverage in the streaming wars. It was also the only bidder seeking all WBD, a sign of the scale it aimed to achieve. 

Comcast soon followed, pitching a potential combination of Warner Bros. with NBCUniversal’s theme parks, broadcast networks, and Peacock. But its bid leaned heavily on equity rather than cash, an unattractive structure for a highly leveraged WBD. Even Comcast’s CFO acknowledged the offer was weaker than rival proposals. 

The most unexpected suitor was Netflix. Despite its $437 billion valuation and dominance in streaming, Netflix had never bought a major studio. Slowing subscriber growth and rising competition pushed it to secure long-term IP ownership, and Warner Bros. ,home to HBO, DC, Harry Potter, and Game of Thrones, offered unmatched value. Netflix submitted a $30-per-share offer, valuing the assets at roughly $75 billion, arguing that a combined platform could unlock cost efficiencies and strengthen its global leadership. Regulators quickly signalled concerns, warning that the merger could give Netflix too much market power. 

Netflix Wins, At First 

Despite regulatory concerns, Netflix ultimately emerged as the winner of WBD’s formal auction in early December. The two companies announced a $72 billion deal, unanimously approved by both boards. 

Yet the celebration was short-lived. Hours after the announcement, Paramount publicly asserted that the sale process had been “tainted” and unfairly tilted toward Netflix. Industry unions warned that Netflix’s acquisition would reduce job opportunities, depress wages, and narrow the range of content produced. The Netflix announcement, instead of concluding the process, triggered the most dramatic phase of the saga: Paramount’s hostile counterattack. 

Paramount’s $108.4 Billion Hostile Bid: A Historic Counterstrike 

On December 8, Paramount Skydance launched a hostile takeover bid for the entirety of Warner Bros. Discovery, going directly to shareholders and bypassing WBD management altogether. In corporate terms, this was an extraordinary maneuver, few hostile takeovers occur at this scale, and almost none within a creative industry as relationship-driven as Hollywood. 

Paramount’s offer, $30 per share, all cash, valued WBD at $108.4 billion, far surpassing Netflix’s $72 billion agreement for only the studio and streaming assets. Paramount argued that its offer provided shareholders with immediate liquidity, total ownership transfer, and a cleaner regulatory path. David Ellison declared that shareholders “deserve to evaluate a superior all-cash offer for the entire company,” sharply criticizing Netflix’s mixed cash-and-stock structure. 

This hostile bid was not just larger in size. It was backed by one of the most globally diverse and politically potent financing coalitions ever assembled in a Hollywood transaction. 

 

The Money Behind the Bid: A Global Alliance of Capital and Influence 

Paramount’s bid is backed by a $40.7 billion equity commitment from a broad group of investors spanning technology, private capital, and global investment funds. At the centre of the consortium is the Ellison family, with Larry Ellison providing both significant capital support and institutional credibility. They are joined by RedBird Capital Partners, a firm well known for its investments across entertainment, sports, and IP-driven businesses. 

A notable element of the structure is the participation of three major Middle Eastern sovereign wealth fundsSaudi Arabia’s PIF, Qatar’s QIA, and Abu Dhabi’s L’imad Holding. These funds have been expanding their exposure to entertainment as part of their long-term investment strategies. The group also includes Affinity Partners, the investment fund led by Jared Kushner, which has previously worked with several Gulf investors on large cross-border transactions. 

To streamline regulatory review, all foreign partners agreed not to take voting or governance rights, helping reduce potential scrutiny from CFIUS. Additional debt financing was arranged through Apollo Global Management, Bank of America, and Citigroup, rounding out a funding package notable for both its size and its diversified sources of capital. 

The Two Visions Now Competing for Warner Bros. 

Paramount and Netflix offer fundamentally different futures for Warner Bros. 

Paramount envisions a fully integrated media giant combining CBS, CNN, Paramount Pictures, Skydance, and Warner Bros. under a single umbrella, effectively recreating a modern version of the classic Hollywood studio system. Ellison argues that such scale would allow the company to challenge Disney and Netflix across every segment: theatrical releases, streaming, linear networks, sports broadcasting, and international distribution. He also frames the consolidation as a stabilizing force for Hollywood’s creative workforce. 

Netflix, by contrast, seeks a streamlined acquisition focused solely on Warner Bros.’ premium intellectual property. Rather than absorb CNN, TNT, or Discovery, Netflix would leave WBD’s cable networks to be spun off, unlocking additional shareholder value. Netflix insists that, once these spin-offs are factored in, its offer is worth more than Paramount's headline figure. 

What Comes Next 

WBD’s board is now evaluating Paramount’s hostile offer and is expected to issue a recommendation within ten business days. Should the company choose Paramount over Netflix, it will owe Netflix a $2.8 billion breakup fee, making the decision even more financially complex. 

Regulators, including antitrust officials and Committee on Foreign Investment in the United States (CFIUS), will play a decisive role. Either deal could be blocked if authorities determine it reduces competition or raises national-security concerns. As news of the bidding war intensified, WBD’s stock rose roughly five percent, reflecting market expectations of continued escalation. 

For shareholders, the choice is stark: A Netflix-led future built around premium IP and global streaming dominance, or a Paramount-led future centered on consolidation, scale, and a return to a more integrated studio system. 

Whichever path is chosen will not merely reshape Warner Bros., it will redefine Hollywood’s competitive landscape for the next decade. 

References list:

Axios. (2025). Inside the funding behind Paramount’s bid for Warner Bros. https://www.axios.com/2025/12/08/jared-kushner-paramount-warner-bros-netflix 

BBC News. (2025a). Warner Bros.: Netflix wins race to buy iconic Hollywood studio. https://www.bbc.com/news/articles/ce91x2jm5pjo 

BBC News. (2025b). Paramount challenges Netflix deal with surprise hostile bid. https://www.bbc.com/news/articles/cj69xzpzrdyo 

Bloomberg. (2025a). Paramount plans $71 billion bid for Warner Bros., Variety says. https://www.bloomberg.com/news/articles/2025-11-18/paramount-plans-71-billion-bid-for-warner-bros-variety-says 

Bloomberg. (2025b). Warner Bros. is said to begin exclusive deal talks with Netflix. https://www.bloomberg.com/news/articles/2025-12-05/warner-bros-is-said-to-begin-exclusive-deal-talks-with-netflix 

CNN. (2025). What is a hostile takeover? https://edition.cnn.com/2025/12/08/business/what-is-a-hostile-takeover