A major shift in the movie and television business is happening. Warner Bros. Discovery (WBD) is currently the focus of a contest between two massive companies: Netflix and Paramount (Skydance).
While Warner Bros. already signed a deal with Netflix in December 2025, Paramount has returned with a higher offer. This situation has created a difficult choice for the people who own shares in the company. One plan would split the company into two parts, while the other would keep it as one large group. The final decision will likely change how people watch movies and how many films go to theaters.
The Path To The Current Bids
The following timeline shows how the competition for Warner Bros. Discovery developed:
December 8, 2025: Netflix and Paramount began a public battle for control. Netflix offered a plan to buy the movie studio and streaming parts of the company.
December 20, 2025: Warner Bros. Discovery announced it had reached an agreement with Netflix.
January 2026: Paramount increased its efforts to stop the Netflix deal, despite Warner Bros. initially rejecting their offers.
February 23, 2026: Netflix co-CEO Ted Sarandos defended the $83 billion deal, saying it would help the film industry grow.
February 24, 2026: Paramount raised its bid to $31 per share for the entire company. Warner Bros. agreed to talk to Paramount again after getting a "waiver" (special permission) from Netflix.
Comparison of Proposed Takeovers
The two companies have very different plans for the future of Warner Bros.
| Feature | Netflix Proposal | Paramount (Skydance) Proposal |
|---|---|---|
| What they buy | Film studio and streaming apps (Max). | The entire company (Studio, Streaming, and TV networks like CNN). |
| Price/Value | Estimated $83 Billion deal. | $31 per share (Recently increased). |
| Company Structure | Rest of the company (cable TV) becomes independent. | Stays together as one large company. |
| Financial Strategy | Focused on growth and new markets. | Promises to cut $6 billion in costs quickly. |
| Theatrical Plan | Promised to keep movies in theaters. | Traditional studio model with a focus on theaters. |
Investigation Of Competing Strategies
The Split vs. The Whole Company
Netflix wants to take the "crown jewels" of the company—the movie studio and the streaming platforms. They plan to let the older cable TV channels, like CNN, become a separate, independent business. Paramount, led by David Ellison, wants to buy everything.
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Signal: The WBD board is currently weighing whether it is better to be a smaller, tech-focused company under Netflix or a giant traditional media group under Paramount.
The Future Of The Big Screen
There is uncertainty about what happens to movies if a streaming company like Netflix owns a major studio. Ted Sarandos stated that films meant for theaters would stay there. However, investigators are looking at whether Netflix would eventually move most films to their app. Paramount is a traditional studio, but questions remain: Could a combined Paramount and Warner Bros. actually afford to release 20 to 30 movies in theaters every year?
Financial Health And Staff Morale
Paramount has promised to cut $6 billion in costs immediately. While this might please some investors, it often means losing many jobs. Ted Sarandos of Netflix argued that this would make the industry "much smaller." Internal reports suggest that staff at Warner Bros. have shifted their support toward the Netflix sale, possibly due to fears of the heavy cost-cutting planned by Paramount.
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Probing The Risks
How would the market react if Paramount takes on massive debt to beat the Netflix price?
Is it possible for Netflix to manage a traditional movie studio without changing its core business model?
What happens to CNN and other TV channels if they are forced to stand alone without the movie studio's support?
Political and Legal Obstacles
The deal faces several major hurdles that have nothing to do with money.
Antitrust Rules: Both Netflix and Paramount must get approval from the U.S. and European governments. Regulators are concerned that one company having too much power could hurt competition.
Political Pressure: Former President Donald Trump has publicly told Netflix to remove Susan Rice (a former Democratic official) from its board. He threatened that the company would "face the consequences" if they did not comply. This adds a layer of political risk to the Netflix bid.
International Clearance: Both bidders have already received some security clearances from authorities in Germany.
Expert Analysis
Ted Sarandos, co-CEO of Netflix, argues that their bid is the only one focused on building the business:
"We’ll be adding to the market where Paramount has committed that they’re going to cut $6bn out of the business right away."
Luke Stillman, a media consultant at Madison and Wall, suggested that Warner Bros. might be using the two companies against each other:
"Warner Bros was looking to create a bidding war."
Professor at Yale (Insights) noted a risk for Paramount:
Either Paramount gets the assets, or it will have to watch as its rival takes them, while Paramount deals with high debt.
Current Status and Next Steps
The board of Warner Bros. Discovery is in a high-pressure situation. They have a "definitive deal" with Netflix, but the law often requires them to consider a higher offer if it is better for the shareholders.
March 20, 2026: Shareholders are scheduled to vote on the Netflix proposal.
The "Match" Clause: If the board decides Paramount’s offer is better, Netflix has four days to match the price or offer a better deal.
The Waiver: Warner Bros. is currently in a seven-day window (ending soon) to talk deeply with Paramount.
The investigation shows that while Netflix has a signed agreement, Paramount's higher cash offer and the promise to keep the company whole are causing the board to reconsider.
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Information Sources
The Guardian: Netflix or Paramount: who would be the best new owner of Warner Bros? (Analysis of studio impact)
BBC News: Netflix and Paramount battle for Warner Bros. (Details on shareholder vote)
The Guardian: Netflix boss says $83bn Warner Bros takeover will benefit industry (Quotes from Ted Sarandos and political context)
Variety: Inside Warner Bros. Discovery, Mood Among Many Staffers Shifts (Internal staff sentiment)
NBC News: Warner Bros. Discovery says new Paramount bid could best Netflix offer (Details on revised bid)
LA Times: The battle for control of Warner Bros.: A timeline (Historical sequence of events)
BBC News: Paramount boosts Warner Bros offer to rival Netflix (Bidding war details)
CNBC: WBD says Paramount raised its bid to $31 per share (Financial specifics)
Fortune: Warner Bros. is still recommending Netflix's takeover bid (Board status update)
PBS NewsHour: Warner Bros reopens takeover talks with Paramount (Regulatory and waiver info)
TechCrunch: What to know about Netflix’s landmark acquisition (Theatrical release commitments)
Yale Insights: Netflix Will Win the Fight Over Warner—Even If It Loses (Market risk analysis)
