The battle for Warner Bros. Discovery has taken a dramatic new turn. Just days after Netflix announced a deal to buy most of the media giant, Paramount launched a surprise public bid to buy the entire company. Netflix’s leader, Ted Sarandos, quickly responded, saying the rival move was “entirely expected” and that he remains “super confident” his company’s deal will succeed.
The fight centers on who gets to control iconic film studios, hit TV networks like HBO, and a huge library of movies and shows. The outcome will reshape where audiences watch their favorite content and could change the entire entertainment industry.
Paramount’s Surprise Bid and the Battle for Warner Bros.
On December 8, 2025, Paramount publicly offered to buy all of Warner Bros. Discovery for $30 per share in cash. This is a direct challenge to Netflix, which had announced a deal on December 5, 2025, to buy Warner Bros.’s studio and streaming businesses for $27.75 per share.
Paramount’s CEO, David Ellison, is taking his offer straight to Warner Bros. Discovery’s shareholders, a move known as a “hostile bid.” He argues his all-cash deal is simpler and worth more money for shareholders. In a statement, Ellison said Warner Bros. Discovery’s board is pursuing an “inferior proposal” with Netflix and that shareholders deserve a better option.
“We’re sitting on Wall Street, where cash is still king,” Ellison told CNBC. “We are offering shareholders $17.6 billion more cash than the deal they currently have signed up with Netflix.”
The key difference between the two offers is what they include. Paramount wants to buy the entire company, which includes cable TV networks like CNN, TNT, and HGTV. Netflix’s deal is only for the movie studio and streaming services like HBO Max. Under Netflix’s plan, the cable channels would be spun off into a separate company.
Ted Sarandos and Netflix’s Confident Response
Netflix’s co-CEO, Ted Sarandos, did not seem worried by Paramount’s new bid. Speaking at a Wall Street conference hosted by UBS on the same day, he called the move predictable.
“Todayโs move was entirely expected,” Sarandos said. “We have a deal done, and we are incredibly happy with the deal. Itโs great for shareholders, great for consumersโฆ We’re super confident we’re going to get it across the line.”
Sarandos and his co-CEO, Greg Peters, argued that their deal is better for Hollywood jobs. They pointed out that Paramount’s proposal talks about finding $6 billion in “synergies,” which often involves cutting jobs to save money.
“Where do you think synergies come from? Cutting jobs,” Sarandos said. “So we’re not cutting jobs, we’re making jobs.”
They also tried to ease concerns from movie theater owners, who worry a Netflix-owned Warner Bros. would stop releasing big films in cinemas. Sarandos promised that Warner Bros. movies would continue to have theatrical releases.
A Fight Over Money, Regulation, and Market Power
The clash is about more than just the purchase price. Both companies are making strong arguments about why their deal is better and more likely to be approved by government regulators.
Paramount’s Arguments:
- More Cash for Shareholders: A higher, all-cash offer of $30 per share.
- Faster Regulatory Approval: Ellison claims merging Paramount and Warner Bros. Discovery creates a stronger competitor to Netflix and Disney, which should please regulators.
- Supports Movie Theaters: Ellison promises to keep putting about 30 movies per year exclusively in theaters, framing Netflix’s model as a threat to the traditional movie business.
Netflix’s Arguments:
- Better Long-Term Value: Netflix argues that when the cable channels are spun off, their value will make the total deal worth more than Paramount’s offer.
- No Dominant Market Share: Netflix’s Greg Peters presented data showing that even with Warner Bros., Netflix would only command about 9% of total U.S. TV viewing time, still behind YouTube and a combined Paramount-Warner entity.
- Job Creation: Positions the deal as a protector of entertainment industry jobs.
A major wildcard in the regulatory process is President Donald Trump. Both CEOs have recently spoken with him. Ellison has highlighted his good relationship with the President, while Sarandos noted their conversations have focused on American jobs. President Trump commented over the weekend that the potential market share of a combined Netflix and Warner Bros. “could be a problem,” indicating he is paying close attention.
What Happens Next for Warner Bros. Discovery
The Warner Bros. Discovery board of directors now has a big decision to make. The company has stated it will review Paramount’s offer and make a formal recommendation to its shareholders within 10 business days. This means a decision is expected by December 19, 2025.
Ultimately, it will be up to the shareholders to decide which path to take. The final choice is between two very different futures:
- A sale to Netflix, creating a streaming superpower focused on online content.
- A sale to Paramount, creating a larger traditional media company with major TV networks, streaming services, and a big commitment to movie theaters.
Financial penalties are also in play. If Warner Bros. Discovery walks away from the Netflix deal to accept Paramount’s offer, it would have to pay Netflix a $2.8 billion breakup fee. Conversely, if the Netflix deal fails to get regulatory approval, Netflix would have to pay Warner Bros. Discovery $5.8 billion.
The stock market reacted quickly to the news. Shares of Warner Bros. Discovery rose, reflecting investor hope for a bidding war. Paramount’s stock also went up, while Netflix’s shares fell. Paramount’s tender offer for shares is currently set to expire on January 8, 2026, unless it is extended.
Also Read: Cashero K-drama Reunites Bon Appรฉtit, Your Majesty Stars Lee Chae-min and Kang Han-na
