Hollywood’s high-stakes showdown

The entertainment world is witnessing an extraordinary corporate drama as Netflix’s proposed $83bn acquisition of Warner Bros. Discovery (WBD) faces a hostile counteroffer from Paramount Skydance, valued at $108bn. 

This contest is not just about numbers - it’s a collision of business models, creative futures, and political intrigue, with implications that will reverberate across the industry.

Netflix’s audacious bid for WBD marks the streaming giant’s most ambitious move yet, aiming to unite its global platform with Warner’s storied assets - HBO, Discovery, and the Harry Potter franchise. The deal, if approved, would cement Netflix’s dominance, giving it control over a vast content library and a combined subscriber base that could reshape the streaming landscape. 

However, Paramount Skydance, led by David Ellison and backed by Oracle co-founder Larry Ellison, has launched a hostile all-cash bid, offering $30 per share for the entirety of WBD. Paramount’s proposal is pitched as superior: not only is it higher in value, but it also promises a quicker, more certain path to completion, with robust financing from US and Middle Eastern investors, including Jared Kushner’s Affinity Partners. 

Jared Kushner’s involvement in Paramount’s financing injects a potent political dimension. As Donald Trump’s son-in-law, Kushner’s role has raised concerns about the Trump family’s interests influencing one of the largest media battles in years. President Trump has openly commented on the Netflix bid, warning that the combined market share “could be a problem” and signalling his intention to be “involved” in the regulatory review. This unprecedented level of presidential engagement has fuelled debate over the impartiality of the antitrust process and whether political connections could tip the scales. 

Paramount said it had submitted six proposals to Warner over a 12-week period before its offer was rejected in favour of Netflix. So Paramount decided to go straight to Warner shareholders. Its bid has been positioned as more favourable for independents, the creative community, and the broader industry. Paramount argues its offer would enhance competition, support creative talent, and maintain a robust theatrical release slate, contrasting with Netflix’s model, which has drawn criticism from unions representing writers and other creatives. The Writers Guild of America has issued a scathing statement against the Netflix deal, warning it would “eliminate jobs, push down wages, worsen conditions for all entertainment workers, raise prices for consumers, and reduce the volume and diversity of content for all viewers”. 

Netflix, for its part, remains confident. CEO Ted Sarandos has emphasised the strategic value of the acquisition, arguing that even with WBD, Netflix would still trail YouTube in total viewing time - a point aimed at downplaying monopoly fears. Netflix contends the deal will offer more choice and value to consumers, but both bids are expected to face intense antitrust scrutiny in Washington and beyond. 

Both Netflix and Paramount face daunting communications challenges: convincing regulators, winning over creative talent, and reassuring consumers and shareholders – particularly as they have to take on a huge amount of debt to finance a deal of this size. The outcome will shape not just the fate of WBD, but the very future of movie and TV content, determining whether Hollywood’s next era is defined by consolidation, creativity, or controversy.

As the battle intensifies, one thing is clear: the story of who will own WBD is far from its final act. This is one all M&A advisors will be watching closely.