A massive bidding war between Paramount and Netflix erupted today (Monday) for the rights to acquire Warner Bros Discovery and its media assets.

What’s at Stake: Warner Bros Discovery’s Media Empire

Warner Bros. Discovery controls some of the most valuable entertainment properties in the world from streaming apps to cable networks.

The company owns Warner Bros. Pictures, HBO, HBO Max, DC Comics, CNN, TBS, TNT, Discovery Channel, HGTV, Food Network, and dozens of other networks.

The film library includes Batman, Superman, Harry Potter, The Lord of the Rings, and thousands of classic films. Warner also owns Game of Thrones, Friends, The Big Bang Theory, and countless hit shows that generate billions in licensing revenue annually.

Paramount Makes $108 Billion Counter Offer

Paramount announced Monday it will make an all-cash offer to buy Warner Bros. Discovery for $30 per share, going directly to shareholders after Netflix secured a deal last Friday.

David Ellison’s Paramount is offering $108.4 billion for the entire company, a 139% premium over Warner’s pre-deal stock price.

Netflix’s $82.7 billion offer only covers Warner’s studio and streaming assets, leaving cable networks like CNN and TNT as a separate spin-off. Paramount’s bid provides shareholders $18 billion more in cash.

Why Cord-Cutters Should Be Concerned

Netflix acquiring Warner Bros. would give the streaming giant control over HBO, HBO Max, and the entire Warner Brothers library. Paramount taking over would create another massive conglomerate by combining CBS, Paramount+, and Warner properties.

Either outcome means less competition and likely higher prices for the consumer. The industry is heading back toward the monopolistic structure we escaped by ‘cutting the cord.’

Cable companies controlled pricing by owning the pipes and channels. Now streaming platforms are doing the same by controlling content libraries and apps.

What Happens Next?

Warner Bros. Discovery shareholders must decide between offers before Paramount’s tender expires January 8, 2026. Rejecting Netflix’s deal would trigger a $2.8 billion breakup fee.

According to odds from Polymarket, Netflix now only has a 19% chance of closing the Warner Bros acquisition by the end of 2026.

Paramount’s bid is backed by sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, plus Jared Kushner’s Affinity Partners.

The deal requires $54 billion in debt financing from Bank of America, Citi, and Apollo. Larry Ellison, Oracle co-founder, backs his son David’s bid. All foreign investors agreed to forgo board seats and governance rights.

The Writers Guild of America has called for blocking the Netflix deal, while theater owners warn it threatens the film industry.

The commentary on forums like Reddit is also not very favorable towards Paramount or Netflix regardless of who wins the Warner Bros bidding war.

Final Thoughts

Whether Netflix or Paramount wins, subscribers will likely end up paying more for content that used to be spread across competing services.

When companies get too big, they typically raise prices and reduce choices. The cord-cutting movement happened because cable companies got greedy, and history is ironically repeating itself in the streaming world.

For more details on this story, refer to the report from The Hollywood Reporter and the official press release from Paramount.

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