According to Forbes, Netflix has won the bidding war for Warner Bros. Discovery and has entered exclusive talks to acquire the media giant. The companies are expected to announce a deal publicly within the coming days. This news comes as rival bidder Paramount Skydance has sent letters to WBD CEO David Zaslav, calling the sales process “tainted.” In a December 3 letter, Paramount’s attorneys alleged the board ran a “myopic process with a predetermined outcome” favoring Netflix, abdicating its duty to stockholders. An earlier December 1 letter argued a Netflix deal would never get regulatory approval, stating Netflix is “the only remaining Big Tech company that has not faced serious global antitrust enforcement.”
Paramount’s Hail Mary Play
Look, Paramount’s letters are equal parts legal strategy and pure, unadulterated desperation. They lost the bid. Now they’re throwing everything at the wall, hoping something sticks long enough to derail Netflix’s exclusive talks. Calling the process “tainted” and accusing the board of having a “predetermined outcome” is a serious allegation. It’s basically them saying, “You never gave us a fair shot!” But here’s the thing: is it sour grapes, or is there a real point about board governance here? The timing is aggressive—letters on December 1 and 3, right as exclusive talks are starting. This isn’t just a complaint; it’s a public pressure campaign aimed at shareholders and regulators before the ink is even dry.
The Real Hurdle: Antitrust
Paramount’s antitrust warning is their strongest card. And they’re probably right. Netflix has largely skated by while other tech giants faced the regulatory heat. A move to swallow Warner Bros. Discovery—with its massive film library, cable networks, and HBO—is a whole different ballgame. We’re talking about a streaming leader absorbing a historic studio and a huge chunk of linear TV. Regulators in the U.S. and especially in Europe would have a field day. Paramount’s letter states the “simple truth” that the deal “likely will never close.” That might be hyperbolic, but it won’t be easy or quick. This could drag on for years, which is its own kind of poison for a deal.
Why Netflix Wants This Mess
So why is Netflix even pursuing this? It’s all about owning the crown jewels—permanently. Netflix’s model has been built on licensing a lot of content. Owning Warner Bros. Discovery locks down the DC universe, Harry Potter, HBO’s prestige catalog, and countless other franchises forever. No more worrying about licenses expiring and shows leaving for a competitor’s platform. It’s the ultimate move from a content renter to a content owner. The revenue from WBD’s linear TV and streaming businesses would be huge, but the real value is in that library and production engine. They’re betting the regulatory headache is worth the permanent strategic advantage.
What Happens Next
Now we wait. An official announcement of exclusive talks is imminent. But then the real drama begins. Paramount’s salvo ensures regulatory scrutiny will be intense from day one. Shareholder lawsuits? Very possible. And let’s not forget, while Netflix negotiates, WBD is still a public company with its own operational challenges. This is a high-stakes gamble for Netflix CEO Ted Sarandos. He’s going all-in on a deal that could define his legacy, but one that his biggest rival says is doomed from the start. I think the next few months will be less about the purchase price and more about the legal and political battlefield. Buckle up.
