Paramount attacks Netflix: Shocking mega-offer jeopardises Warner deal

Luca Fontana

8.12.2025

Translation: machine translated

What started out as a "normal" billion-dollar deal turns into a full-blown Hollywood thriller: Netflix wants Warner, but Paramount counters with a hostile mega-offer. Politics, power and billions collide.

Sometimes reality writes the best economic thrillers. And this story here is guaranteed to be made into a film one day: No sooner had Netflix won the bid to acquire Warner Bros. Discovery on Friday than rival Paramount strikes back - with a hostile takeover bid of over 108.4 billion dollars. This was reported by Reuters.

What is clear is that this saga will have many more twists and turns.

Who's bidding? What's happening right now?

Paramount-Skydance, newly merged and financially backed by tech billionaire Larry Ellison, made a hostile - or: hostile - offer to Warner Bros. Discovery on Monday. Hostile means that Paramount is going directly to the shareholders and bypassing the Board of Directors - a move that is as unusual as it is spectacular in Hollywood.

Why is this offer so explosive?

Because Netflix had actually already won: After a weeks-long bidding war, Warner agreed to an $82 billion deal with Netflix on Friday - including a $5.8 billion break-up fee.

However, Paramount believes the process is unfair and even accuses Warner internally «of bias» against their offer. Paramount CEO David Ellison said in a CNBC interview: «'There's an inherent bias against us. We are fighting for our own shareholders - and for those of Warner Bros. Discovery.»

Why is politics getting involved now?

US President Donald Trump asked public questions about the Netflix offer at the weekend. According to Bloomberg, he is said to have already met with Netflix co-CEO Ted Sarandos in mid-November - with the indication that Warner should «be sold to the highest bidder».

There's another reason why it's getting tricky: Paramount's most important financial backer and father of CEO David Ellison, Larry Ellison, has close ties to the Trump administration. This gives rise to the accusation that Trump could politically influence the takeover battle in favour of a company whose central figure belongs to his entourage. This lends the bidding contest a cronyism component that immediately sets off alarm bells in Washington.

However, the Netflix deal is also facing growing criticism: Labour unions and members of parliament are warning of job losses and higher prices for consumers. The antitrust authorities would also have to carefully scrutinise such a mega-deal. However, this is also likely to apply to Paramount's counter-offer - after all, two of the last major Hollywood studios would merge and assume a dominant position in the traditional studio business.

What's at stake for the streaming world

In short: everything. With Warner, Netflix would have access to DC, HBO, Warner Bros. Pictures and one of the largest IP catalogues in film history - a strategic jackpot, especially for games and live entertainment.

Paramount, on the other hand, sees itself as a «natural» candidate: a studio that is more firmly anchored in the traditional film business and would trigger less radical changes in the streaming market. It is precisely this contrast that makes the political debate so explosive.

What happens next?

Reuters sums it up: «The takeover of Warner Bros. Discovery is far from being finalised. There will be more twists and turns before we see the finish line.»

Netflix is still in pole position. But Paramount has pushed the door open again with a huge bang - and reopened the race. Hollywood couldn't write this story any better.

Luca Fontana

Senior Editor

Luca.Fontana@digitecgalaxus.ch

I write about technology as if it were cinema, and about films as if they were real life. Between bits and blockbusters, I’m after stories that move people, not just generate clicks. And yes – sometimes I listen to film scores louder than I probably should.

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