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 the Warner Hollywood studios and streaming business on Friday than Paramount strikes back - offering over 108.4 billion dollars for the entire Warner Bros. Discovery group. This was reported by Reuters.

This makes it clear that this is no longer a simple bidding war, but an entire media empire with all the cable channels, news divisions and assets that go with it.

Who is 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.

The key difference: Netflix only wants to buy the studio and streaming business, while Paramount wants the entire holding company, including linear TV channels such as CNN, TNT Sports, Discovery, cable channels and the entire Warner ecosystem.

Why is this offer so explosive?

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

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».

But things are getting tricky for another reason: Paramount's most important financial backer - and father of CEO David Ellison - Larry Ellison, has close ties to the Trump administration. This suddenly raises a potential political motive: should Paramount win, CNN - one of the harshest Trump critics in recent years - would automatically end up under the influence of the Ellison family. You can literally hear the alarm bells ringing in Washington: The thought that a president could indirectly influence the ownership of one of his strongest media opponents is causing enormous political nervousness.

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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