According to Ars Technica, Paramount Skydance has launched a hostile takeover bid for the entirety of Warner Bros. Discovery, offering $108.4 billion or $30 per share—a massive 139% premium over WBD’s stock price from September 10, 2025. This comes just after Netflix agreed to pay $72 billion for WBD’s streaming services and movie studios, a deal set to close in Q3 2026 and which would spin off the cable channels into a separate entity called Discovery Global. Paramount CEO David Ellison claims WBD’s board never “engaged meaningfully” with their six proposals over 12 weeks, so they’ve taken the offer directly to shareholders. Paramount argues its all-in offer is superior, partly because the Netflix deal leaves shareholders with the “uncertain” value of the linear cable business. The company also asserts it can get “expeditious regulatory clearance,” unlike the Netflix transaction which it claims poses major antitrust risks in the EU and US.
The real fight is over regulators and politics
Here’s the thing: this isn’t just about who has the bigger checkbook. It’s a massive bet on who can navigate the antitrust gauntlet. Paramount‘s statement is basically a regulatory attack ad against Netflix, arguing that combining the dominant global streamer with a top competitor like HBO Max would raise prices and hurt creators. But that argument conveniently ignores the elephant in the room. Paramount wants to merge two of Hollywood’s oldest film studios *and* combine major news operations like CNN and CBS News. That seems like it would trigger just as many, if not more, competition concerns, doesn’t it?
So why is Paramount so confident? Politics. The company already successfully merged with Skydance under the current administration, a deal some lawmakers questioned due to a $16 million settlement Paramount paid over a CBS News report involving Trump. Larry Ellison, David’s father and Oracle co-founder, is a known Trump ally. But political winds shift. Trump recently raged against Paramount’s new ownership on Truth Social over a 60 Minutes interview, suggesting their relationship may have cooled. Meanwhile, Netflix co-CEO Ted Sarandos reportedly had a two-hour private meeting with the president recently. This is becoming a high-stakes lobbying war where regulatory approval might hinge on who has the president’s ear.
Stakeholder impacts: theaters, streaming, and news
For the struggling movie theater industry, Paramount is selling itself as the savior. They’re leaning hard into fears that Netflix, with its streaming-first DNA, will eventually cut back on theatrical releases. Ellison promises a Paramount-WBD merger means “a greater number of movies in theaters,” playing on Paramount’s century-old studio legacy. Netflix’s Sarandos says they’ll honor WBD’s theatrical commitments through 2029, but the industry is deeply skeptical. For streaming subscribers, Paramount’s plan suggests folding HBO Max into Paramount+, which could mean a more consolidated but less competitive service landscape. And let’s not forget the news divisions. Combining CNN and CBS News under one corporate roof would create a media giant with enormous influence, raising serious questions about editorial independence and market diversity that regulators would have to scrutinize.
This saga is only just beginning
Look, we’re in for a long, messy fight. WBD’s board has already rejected Paramount, believing more value lies in the Netflix deal and the clean split. Now Paramount is going straight to shareholders with a huge premium, forcing them to choose between a certain, fat payout now and the speculative future value of two separate companies. The broader industry implications are huge, potentially reshaping Hollywood’s balance of power. And with lawmakers already watching Paramount’s previous merger, and the political connections of both the Ellisons and Netflix’s Sarandos in play, this is as much a Washington story as a Hollywood one. Throw in a public feud with the president, and you’ve got a perfect storm of money, media, and politics. Buckle up.
