A dramatic power struggle is unfolding in Hollywood and Wall Street as Paramount, backed by billionaire Larry Ellison and led by his son David Ellison, has stepped into direct competition with Netflix to acquire Warner Bros Discovery. What began as a straightforward bid by Netflix to secure Warner’s studios and streaming operations has now escalated into a much larger and far more political contest, with Paramount submitting a massive all-cash proposal that has shocked analysts, shareholders and regulators alike.
Paramount’s bid is not subtle. The company has publicly offered $30 per share for all of Warner Bros Discovery — a valuation that pushes the total deal close to $108 billion including debt — positioning itself as the group willing to buy the entire company, not just the streaming and studio assets. Netflix, in comparison, had offered $27.75 per share in a mixed cash-and-stock deal, which covered only HBO and Warner Bros studios but excluded key networks such as CNN and other cable properties. For Netflix, the intention was to carve out the entertainment core and spin off the remaining networks, while Paramount is asking shareholders to let them take everything under one roof.
David Ellison has not hidden his confidence. Speaking to CNBC, he argued that Paramount’s offer is a “superior alternative” and insisted that shareholders are being presented with almost $17.6 billion more in cash than Netflix is currently offering. From his perspective, the choice should be easy: Paramount wants Warner in its entirety, and it wants to pay upfront, without the complexity of mixed stock structures. His messaging is clear, direct, and aimed squarely at investors who may be growing impatient with Warner’s financial situation.
But Netflix is not backing down. The company has insisted the deal is “already done,” though industry insiders suggest this is far from the reality. Ted Sarandos, Netflix’s co-CEO, told investors he expected a counteroffer — and Paramount delivered exactly that. Sarandos, however, remains publicly unworried, projecting confidence even as the regulatory and political temperature around the deal continues to rise.
Politics, surprisingly, is exerting heavy influence over the situation. Former U.S. President Donald Trump has openly warned that Netflix’s acquisition of Warner Bros Discovery “could be a problem” for regulators, citing concerns about market share concentration. Trump’s comments added a sudden, unexpected pressure point on Netflix, especially since Netflix’s dominance in streaming is already a frequent point of discussion in antitrust circles. In an unusual twist, Trump also stated he intends to “be involved in the decision,” adding a layer of unpredictability to the regulatory process that analysts are now watching closely.
Ironically, the political tensions are also challenging Larry Ellison himself, who has been a notable Trump ally. Despite Ellison’s long-standing ties to the former administration and his placement of Trump-aligned figures in strategic positions, it appears that Netflix’s influence and regulatory concerns have weakened any expected political support. This adds yet another layer of complexity to a bidding war that is no longer purely financial but now deeply entangled with public policy and competitive fairness.
From a business perspective, Paramount’s ambition is clear: merging Warner’s massive content library — from HBO to DC to CNN — with Paramount’s own assets could create a Hollywood superpower capable of directly countering Netflix, Apple, Disney and Amazon in the global media battlefield. Analysts who favour Paramount’s offer argue that the Ellison family has the financial strength and long-term vision to revitalise Warner’s struggling business segments, and that their all-cash proposal offers the cleanest and most shareholder-friendly path forward.
However, regulatory hurdles remain daunting. A combined Paramount–Warner entity would still face intense scrutiny, but Netflix owning Warner Bros Discovery would likely face even stronger antitrust pressure, especially given concerns about job cuts, content consolidation and rising subscription prices. Hollywood unions have already expressed discomfort with Netflix’s proposal, fearing that an acquisition by the world’s largest streaming platform could reduce competition and worsen labour conditions.
The motivation behind Netflix’s bid is obvious: locking down Warner’s intellectual property would give Netflix exclusive, long-term access to some of the most valuable entertainment franchises in the world. For a company aggressively expanding into gaming, live events, merchandising and broader consumer ecosystems, Warner’s IP library could accelerate Netflix’s ambitions dramatically.
But the outstanding question remains — who will win? Paramount is offering more money, more certainty and a complete acquisition. Netflix is offering strategic synergies, unmatched streaming reach and a deep understanding of global content distribution. Both bids face intense political and regulatory scrutiny, and both come with massive industry-wide consequences.
For now, the saga is far from over. Paramount has accused Warner Bros Discovery’s board of favouring Netflix unfairly and claims the sale process is biased. Warner executives reportedly referred to the Netflix deal as a “slam dunk” internally, raising eyebrows and causing further friction. Analysts remain divided on which bid is more realistic or more beneficial, but one thing is clear: this battle will reshape the entertainment industry for years to come.
As the story develops, the world’s biggest streaming and media companies are preparing for a showdown that blends business, politics and the future of Hollywood — and the outcome is still anything but certain.
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