Paramount Launches $108.4 Billion Hostile Bid to Counter Netflix's Warner Bros. Acquisition

On December 5, 2025, Netflix announced a $72 billion acquisition deal for Warner Bros. Discovery, aiming to create the world's largest streaming platform with 450 million subscribers. This deal combined Netflix's streaming leadership with Warner Bros.' iconic franchises like Harry Potter and DC Comics, with a total estimated value of nearly $83 billion and significant debt financing of $59 billion. Netflix anticipates annual synergies of $2-3 billion but faces intense regulatory scrutiny, particularly in the U.S., over concerns of market concentration and antitrust issues. Market responses have been cautious, reflecting worries about Netflix's debt and integration challenges.

However, the acquisition race intensified when Paramount Skydance submitted a hostile all-cash bid of $108.4 billion for Warner Bros. Discovery, seeking to derail Netflix's agreement. Analysts are divided on this development. While some suggest that Paramount's aggressive offer reflects strategic necessity and could benefit shareholders if priced correctly, others warn about the complexities of regulatory review and Paramount's substantial debt burden to finance the purchase. The U.S. Department of Justice is expected to examine the deal closely amid fears of monopolistic dominance in the entertainment industry.

This acquisition battle underscores the shifting dynamics in the media landscape, as traditional companies face pressure from tech giants. It remains unclear whether Paramount's higher bid will prevail or prompt a bidding war amid strict regulatory challenges. Both companies have positioned themselves for an extended contest for control of Warner Bros. Discovery, with significant implications for global entertainment.