In a high-stakes battle for Hollywood’s future, Warner Bros. Discovery has decisively chosen a path. The company’s board is urging shareholders to reject a massive $108.4 billion takeover bid from Paramount Skydance, favoring instead a previously agreed $72 billion deal with streaming titan Netflix.
This move creates a dramatic showdown over the fate of one of the industry’s most storied studios. While Paramount touted its offer as “superior,” Warner Bros.’s leadership unanimously concluded that the Netflix agreement presents greater long-term value and less execution risk.
The core of the conflict lies in what each suitor wants to buy. Netflix aims to acquire Warner Bros.’s prized film studio and the HBO streaming service, gaining instant access to a legendary content library including franchises like Harry Potter and DC Comics. This deal would require Warner Bros. to spin off its linear TV networks (like CNN and TNT) beforehand.
Conversely, Paramount seeks a full acquisition, which would merge competing cable channels like CBS and MTV with Warner’s portfolio. This approach raises significant regulatory concerns about market consolidation and reduced consumer choice.
Netflix has welcomed the board’s recommendation, emphasizing the “clearer funding structure” of its bid. Backed by the billionaire Ellison family, Paramount remains a formidable contender and could yet return with a revised offer, ensuring this corporate drama is far from over.
