Paramount Vs Netflix: Who Will Acquire Warner Bros?

—which had been declared the winner of a weeks-long bidding war on Friday— is attempting to defend its $72 billion agreement, which totals $82.7 billion with debt and also includes a $5.8 billion termination fee.

Paramount’s Unexpected Bid Reignites the Contest

Paramount returned with its most aggressive offer to date. These are the key points of its proposal:

• A $108.4 billion overall valuation for WBD.
• $30 per share, compared to Netflix’s offer of nearly $28 per share.
• A direct message: Warner Bros abandoned a “fair bidding process.”
• Ellison’s public statement: “WBD shareholders deserve to consider our superior all-cash offer.” Furthermore, Paramount leveraged the only argument that still outweighs the Netflix brand name on Wall Street: immediate, certain cash. The move also revealed something deeper, as Paramount had been attempting this acquisition since September, but —according to the company itself— WBD had “predetermined” Netflix as the winner. This new attempt publicly challenges the process, generating legal, media, and political pressure on Warner’s board of directors.

Netflix’s Motivations

Netflix’s plan is not merely to acquire a studio; it aims to secure decades of content, guarantee premium intellectual property, and mitigate the risk of third-party dependence while expanding into video games, live events, and immersive experiences. Among the most significant incentives for Netflix are:

• Access to one of the world’s most valuable catalogs: Harry Potter, DC Comics, Game of Thrones, Rick and Morty, Friends.
• Immediate credibility in sectors where it is still building its identity (gaming, live entertainment).
• Ability to integrate intellectual properties into broader markets: theme parks, licensing, toys, interactive experiences. According to Morningstar, a Netflix–WBD combination would entail substantial overlap in streaming platforms. It also suggests potential declines in combined revenue, unless Netflix doubles prices or maintains separate platforms. However, neither alternative excites analysts. Nevertheless, Netflix insists the deal will add value. Ted Sarandos expressed “great confidence” in regulatory scrutiny, an optimism many experts view as more strategic than realistic.

Paramount: A Player with Billionaire Backing

Although Paramount has experienced inconsistent box office performance, it remains one of Hollywood’s most influential studios. What truly makes it a formidable contender in this battle are two factors:

1. The Ellison Family’s Deep Pockets

David Ellison leads the offer, but the financial foundation comes from the support of his father: Larry Ellison, co-founder of Oracle and the second wealthiest person in the world. This positions Paramount as a buyer with immediate liquidity, as well as the capacity to increase its offer and the financial resilience for a protracted process.

2. Its Ties to the Trump Administration

Analysts indicate that Paramount would possess a significant advantage in the political arena due to deeper relationships with the U.S. government. This suggests a more favorable reputation among antitrust regulators. In other words: if the battle is decided in Washington, Paramount could have the upper hand.

Who Holds the Advantage Today?

The answer is not definitive, but the landscape is shifting towards a scenario where Paramount gains ground while Netflix retains its initial momentum. Points in Paramount’s favor:

• Larger, all-cash offer with a high premium.
• Lower regulatory risk.
• Tremendous financial backing.
• Potential government support. Points in Netflix’s favor:
• Reached the agreement first.
• Possesses a global distribution infrastructure.
• Ensures synergies with its dominant platform.

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