Paramount renews bid for Warner Bros as Netflix deal faces fresh challenge

A high stakes takeover battle is unfolding in Hollywood as Warner Bros. Discovery reviews a revised offer from Paramount Global, even while continuing to back a competing deal with Netflix. The outcome could dramatically reshape the global entertainment industry .

Paramount had earlier launched a USD 77.9 billion all cash hostile bid to acquire Warner in its entirety, including its film studios, HBO, CNN and Discovery networks. That proposal valued the combined enterprise at about USD 108 billion including debt. After a recent negotiation window closed, Paramount returned with a revised offer, signalling it is determined to win control.

Netflix’s proposal is narrower but equally strategic. It seeks to buy only Warner’s studio and streaming operations for USD 72 billion in cash, or roughly USD 83 billion including debt. Warner’s board has repeatedly endorsed the Netflix deal, and shareholders are expected to vote soon. If the board changes its stance in favour of Paramount, Netflix would have the chance to revise its offer, potentially triggering a bidding war .

The fierce interest in Warner reflects a simple truth: scale and content now define power in entertainment. Warner owns globally recognised franchises including the “Harry Potter” universe and HBO’s premium programming. For Paramount, acquiring Warner would combine two major Hollywood studios, strengthening its leverage in film production, advertising and distribution while reducing competition.

For Netflix, the goal is different. While it dominates subscription streaming, it lacks a traditional studio system of Warner’s size. Owning Warner’s production engine and vast content library would reduce its reliance on outside licensing and deepen its control over theatrical and streaming releases. In effect, both bidders see Warner as a gateway to long term industry dominance .

Yet the deals raise serious antitrust concerns . A Paramount Warner merger would shrink the number of major studios, potentially limiting creative competition. A Netflix Warner combination could concentrate even greater power in streaming, possibly affecting pricing, consumer choice and market access for smaller players. Netflix argues it competes with platforms such as YouTube, but regulators remain cautious.

The US Department of Justice is reviewing the proposals, and political scrutiny has added complexity, with President Donald Trump previously commenting on the situation. Paramount’s bid is strongly backed by billionaire Larry Ellison .

Whichever bidder prevails, the decision will influence who controls some of the world’s most powerful storytelling platforms and how competitive Hollywood remains in the years ahead.