Hollywood now finds itself consumed by a monumental and high-stakes confrontation between two of the entertainment world’s most powerful forces: Paramount, spearheaded by David Ellison, and the streaming behemoth Netflix. At the center of this escalating corporate struggle lies Warner Bros. Discovery (WBD), a studio and streaming powerhouse that both contenders view as the key to reshaping the future of global entertainment. What began as standard acquisition negotiations has intensified into a fierce, public contest for dominance, characterized by financial ambition, strategic assertions, and competing narratives about who can best serve the needs of consumers, creators, and shareholders alike.
Ellison’s Paramount, bolstered by backing from his billionaire father Larry Ellison—the Oracle co-founder—launched a hostile takeover bid after WBD dismissed earlier overtures. The rejection came as WBD opted instead to accept Netflix’s proposal to acquire its studio and streaming divisions. Now, Ellison is making a direct, persuasive appeal to WBD shareholders, positioning himself as the more credible and beneficial steward of the company’s future. In his remarks, Ellison emphasizes that Paramount’s offer provides greater clarity and speed in achieving regulatory approval, suggesting that his team could finalize the deal within a shorter window than Netflix. He describes his vision as one that fosters healthy market competition, safeguards creative freedom, and favors audiences—calling it explicitly “pro-consumer, pro-creative talent, and pro-competition.”
While Netflix has refrained from responding publicly to the hostile challenge, its leadership has repeatedly underscored the transformative potential of its original agreement with WBD. By combining its global streaming library—brimming with popular hits—with Warner Bros. Discovery’s storied franchises and HBO’s prestige programming, Netflix contends it can exponentially elevate its content ecosystem. Co-CEO Ted Sarandos framed the partnership as a pivotal moment in Netflix’s evolution, asserting that the alliance would deliver unprecedented entertainment value and diversity to audiences worldwide. In his view, this merger represents a critical step toward Netflix becoming “the most loved and most valued entertainment company” across global markets.
Both companies have crafted intricate narratives tailored to their various stakeholder groups, which include not only investors but also industry regulators, employees, and creative communities across Hollywood. Each argues its offer delivers superior long-term outcomes, but their rationales differ sharply in tone and emphasis.
From a financial perspective, Paramount’s Skydance-led consortium has presented an aggressive bid of $30 per WBD share, outpacing Netflix’s $27.75 per-share offer. Paramount’s proposal encompasses the entirety of WBD’s operations, whereas Netflix’s offer excludes certain linear television networks such as CNN and TNT. Moreover, Ellison stresses that unlike Netflix’s mixed cash-and-stock arrangement, his bid is composed entirely of cash, lending it both simplicity and certainty. In total valuation, Paramount’s proposal amounts to $82.7 billion—$17.6 billion more than Netflix’s offer—with $72 billion represented in equity. Ellison insists these financial terms not only reflect fair value but also represent a more stable proposition for shareholders.
Equally important in this complex equation is the matter of regulatory scrutiny. Ellison has repeatedly claimed that his company stands a better chance of clearing antitrust review and other governmental assessments. He predicts potential approval could occur in as little as twelve months, an unusually brisk timeline for deals of this magnitude. Adding a layer of political intrigue, former President Donald Trump publicly noted his involvement in evaluating these transactions. The longtime alliance between Larry Ellison and Trump—as well as the participation of a firm linked to Jared Kushner, Trump’s son-in-law—further fuels speculation that political relationships may indirectly shape the process.
Beyond dollars, politics, and procedures, Ellison has also sought to appeal to Hollywood professionals and general audiences by highlighting Paramount’s commitment to creativity, employment, and cinematic tradition. According to him, the acquisition would stimulate job creation, expand theatrical releases—with more than thirty films per year planned—and strengthen both companies’ film and television production pipelines. This vision directly contrasts Netflix’s digital-first approach, which many within the film industry perceive as undermining traditional theatrical distribution. Although Netflix has pledged to continue releasing Warner Bros. films in theaters, its reputation for prioritizing rapid streaming releases has at times put it at odds with established Hollywood practices. Ellison argues that a Paramount–WBD merger would form a balanced and formidable competitor to Netflix, whereas a Netflix–WBD merger might dangerously consolidate streaming power, enabling Netflix to exert greater control over pricing and content distribution.
Netflix, for its part, has remained equally determined to present itself as the more innovative and consumer-oriented buyer. The streaming giant argues that acquiring WBD would enhance, not diminish, creative opportunities and consumer choice. While Netflix holds the leading global position in subscription streaming, it recognizes a comparative weakness in owning large-scale, globally resonant franchises. To remedy that, Netflix envisions integrating WBD’s renowned intellectual properties—such as the DC Comics universe and the Harry Potter franchise—into its expansive creative engine. Executives describe this synergy as a “flywheel effect,” where combining WBD’s cultural touchstones with Netflix’s reach would generate new levels of audience engagement and profitability.
Financially, Netflix has emphasized built-in safeguards and efficiencies within its proposal. Should WBD abandon the Netflix deal in favor of another acquirer, it would owe a $2.8 billion breakup fee—mitigating some of Netflix’s exposure. Conversely, Netflix itself commits to a $5.8 billion fee if the deal fails due to regulatory obstruction, signaling its confidence in the deal’s integrity despite the risk. Analysts on Wall Street have generally observed that Netflix may face more formidable regulatory obstacles, given its already dominant position in streaming. Nevertheless, the company is actively courting political goodwill: former President Trump disclosed that Sarandos recently met with him and praised Netflix’s leadership for its vast industry impact, even as he acknowledged the company’s substantial market share could complicate approval. Netflix projects that the transaction could close within 12 to 18 months, contingent upon WBD’s planned spinoff of its linear channels into a new entity, Discovery Global.
To further support its case, Netflix has sought to reassure Hollywood’s creative workforce and consumer advocates. Company representatives emphasize that merging with WBD would expand available creative platforms, allowing filmmakers, writers, and producers to reach wider audiences than ever before. Netflix predicts that many of its subscribers, who currently do not have access to HBO Max, would be newly exposed to the WBD catalog, enriching viewer options and broadening global cultural visibility. Additionally, Netflix underscores the economic advantages of consolidation, projecting $2–3 billion in cost savings—largely from streamlining overlapping operations—while asserting that the efficiencies will ultimately free more resources for production and innovation. The company further claims that by uniting its data-driven streaming technology with WBD’s artistic legacy, it can accelerate both creative experimentation and employment growth within the entertainment sector over the long term.
Ultimately, the battle between Paramount and Netflix represents more than just another corporate merger—it has become a symbolic struggle over the very nature of storytelling, distribution, and creative power in the modern era. Each contender frames its approach as the one most likely to sustain Hollywood’s economic health, preserve artistic ambition, and satisfy an increasingly discerning global audience. The final outcome, determined by shareholders, regulators, and the competitive realities of the market, will not only decide who commands the historic Warner Bros. Discovery empire but also redefine how billions of people around the world experience entertainment in the years to come.
Sourse: https://www.businessinsider.com/paramount-vs-netflix-why-each-says-wbd-offer-is-best-2025-12
