Paramount strikes back with $108bn bid to challenge Netflix for Warner Bros

Paramount Skydance is not done yet. On Monday, the studio made a $108.4 billion bid to acquire Warner Bros. Discovery, disrupting a deal that Netflix had seemingly secured just days before. This move means Paramount is hotly contesting Netflix’s $72 billion offer for the studio’s TV, film, and streaming assets, which include valuable properties like HBO and DC Comics.

Netflix celebrated what appeared to be a victory on Friday following a bidding war that captured significant attention in Hollywood and on Wall Street. However, Paramount’s recent counteroffer indicates that the battle for Warner Bros is far from over. Analysts expect a tense showdown that could last for weeks or even months before a final resolution is reached.

The situation is serious. Netflix’s purchase, which includes a $5.8-billion fee if the deal falls through, is already facing criticism from lawmakers and industry groups who are worried about possible job losses and price hikes. Paramount’s counteroffer makes things even more complicated, raising concerns about getting regulatory approval and the risk of market consolidation.

A battle for media dominance

Paramount’s push reflects its ambition to compete with not only Netflix but also tech giants like Apple, which are expanding into content creation. CEO David Ellison said the company sees “an inherent bias” against its offers but is determined to fight for both its shareholders and those of Warner Bros Discovery.

Analysts note that Paramount brings serious financial muscle to the table, backed by Ellison’s father, Oracle co-founder Larry Ellison. The studio’s box office record has been uneven, yet access to Warner Bros’ intellectual property could position Paramount as a major player in streaming, gaming, and live entertainment.

Read also: Warner Bros acquisition: Netflix edges Comcast and Paramount with highest cash offer

The deal is not just about money. Control over Warner Bros’ vast portfolio gives a company instant credibility, broader audience reach, and merchandising potential, particularly in gaming, where Netflix is still building original content.

What happens next

The new bid makes an already tense situation more complicated. Paramount plans to appeal to shareholders, regulators, and politicians to challenge Netflix’s position. Both companies must deal with antitrust issues and overlapping assets that could affect revenue and competition.

For the entertainment industry, the outcome matters far beyond Hollywood boardrooms. Jobs, content production schedules, and consumer subscription costs could all be affected. Brands and advertisers watching the streaming wars will also need to adapt to whichever company ultimately gains control.

Ross Benes, a senior analyst at eMarketer, summarised the unfolding drama: “Netflix is in the driver’s seat, but twists lie ahead. Paramount will appeal to shareholders, regulators, and politicians. The battle could become prolonged.”

As the saga unfolds, Paramount and Netflix are locked in a high-stakes race to secure one of Hollywood’s most coveted studios, a showdown that could reshape the future of streaming, media production, and entertainment worldwide.