Paramount Launches Surprise Bid to Seize Warner Bros. Assets Amid Netflix Deal

Paramount Skydance announced on Friday that it is pushing forward with a hostile takeover bid for Warner Bros. Discovery's (WBD) streaming and movie studio businesses, despite Netflix's recent agreement to acquire the same assets for $82.7 billion. The move comes after Paramount submitted six proposals over the course of 12 weeks, which WBD allegedly failed to engage with meaningfully. According to a statement from Paramount, the company believes its bid is superior to Netflix's and that WBD's current agreement with the streaming giant is unfair and inadequate. "We are disappointed that WBD never engaged meaningfully with our proposals, despite our repeated efforts to engage in a constructive dialogue," said a spokesperson for Paramount. "We believe our bid is the best option for WBD's stakeholders and that it would unlock significant value for them." The proposed takeover would include WBD's streaming and film businesses, as well as its film and TV libraries, which include the HBO and HBO Max streaming services. However, it would not include WBD's cable channels, which are set to be split off into a separate company called Discovery Global. Netflix announced last week that it had agreed to pay an equity value of $72 billion for WBD's streaming and film businesses, with the deal expected to be completed in the third quarter of 2026. WBD's decision to accept Netflix's bid has been met with skepticism by some analysts, who argue that the streaming giant is overpaying for the assets. "We think Netflix is paying too much for WBD's streaming and film businesses," said a media analyst at a leading research firm. "The deal is likely to be dilutive to Netflix's earnings and may not generate the returns that investors are expecting." The proposed takeover by Paramount Skydance has sparked concerns among WBD's employees and stakeholders, who are worried about the potential impact on the company's operations and culture. "We are concerned about the potential disruption to our business and the impact on our employees," said a WBD spokesperson. "We will continue to engage with Paramount and explore all options to protect our interests." The current status of the takeover bid is unclear, with Paramount and WBD engaged in a high-stakes game of cat and mouse. Netflix has already begun integrating WBD's streaming and film businesses into its own operations, and it is unclear how a hostile takeover by Paramount would affect the deal. The next developments in this saga are likely to be closely watched by investors and industry observers around the world.