Why has Paramount launched a hostile bid for Warner Bros Discovery?

December 8, 2025

Warner Bros Discovery has become the center of a major acquisition battle between two suitors offering vastly different proposals. Netflix has announced a deal to purchase Warner Bros' studio and streaming divisions for $82. 7 billion, planning to spin off the remaining assets as a separate company.

Who is affected

Warner Bros Discovery shareholders
Netflix (300+ million customers)
HBO Max subscribers (approximately 120 million)
Paramount+ subscribers (79 million)
Actors and screenwriters
Local cinemas
Advertisers
Local television distributors
Employees of Warner Bros' networks including CNN, Food Network, HBO, and sports divisions
Employees of Paramount's networks including Nickelodeon, CBS, and Comedy Central
The Ellison family (Paramount Skydance backers)
Trump and his son-in-law Jared Kushner (Paramount financial partner)

What action is being taken

Paramount Skydance is wooing Warner Bros and has launched a hostile takeover bid directly to shareholders
Netflix is offering $23.25 per share plus equity stake to acquire Warner Bros' studio and streaming divisions
Paramount is proposing to pay $30 per share in an all-cash offer for the entire company
Both deals are expected to face scrutiny from regulators in the US and Europe

Why it matters

This battle represents a pivotal moment in the streaming wars as traditional media companies struggle to compete with digital giants like Netflix and Disney. The outcome will significantly reshape the entertainment industry's competitive landscape, determining who controls vast libraries of iconic content ranging from Harry Potter to Friends, and premium television brands like HBO. The deal also raises critical questions about media consolidation, market power over content creators, the survival of local cinemas, and potential concentration of news outlets, particularly given the political connections involved with the Trump administration.

What's next

No explicit next steps stated in the article

Read full article from source: BBC