The corporate battle between Netflix and Paramount to take over the assets of Warner Bros. Discovery (WBD), including the iconic HBO brand, has shaken the foundations of the streaming and global entertainment industry. At stake is the future of one of Hollywood’s most legendary studios, and the outcome could redefine the balance of power in the audiovisual sector.
READ ALSO. Netflix defends Warner Bros. acquisition and rules out job cuts
Below, we explain in detail the actors, figures, interests, and political tensions behind this unprecedented dispute.
1. How did the dispute between Netflix and Paramount over Warner and HBO begin?
On Friday, Netflix announced an $83 billion deal to acquire the Warner Bros. Discovery studios and its streaming business, including HBO Max. The proposal was approved by the boards of both companies and presented as a strategic move to consolidate its leadership in global entertainment.
However, just three days later, Paramount Skydance, led by David Ellison, launched a hostile takeover bid for all of Warner Bros. Discovery, valued at $108.4 billion, including debt. Unlike Netflix’s proposal, Paramount seeks to acquire all assets, including cable channels such as CNN, TNT, HGTV, and Cartoon Network, in addition to HBO and the film studios.
2. What does Paramount say about its offer?
Paramount’s strategy was bold: it bypassed Warner’s board of directors and went directly to the shareholders, arguing that they were being offered an “inferior proposal.” In its statement, Paramount said:
“The offer is strategically and financially attractive for Warner Bros. shareholders and provides a superior alternative to Netflix’s, which offers lower and uncertain value and exposes WBD shareholders to a prolonged multijurisdictional regulatory authorization process with an uncertain outcome, along with a complex and volatile combination of equity and cash.”
Paramount is offering $30 per share in cash, compared to the $27.75 offered by Netflix in cash and stock. In addition, it claims its proposal adds $18 billion more in cash for shareholders.
David Ellison insisted: “WBD shareholders deserve the opportunity to consider our excellent cash offer for their shares of the entire company. Our tender offer provides superior value and a safer and faster closing process.”
3. What is Netflix’s position in this battle for Warner?
During their December 8, 2025 conference, Netflix co-CEOs Ted Sarandos and Greg Peters appeared calm and confident in the already signed agreement: “We have a closed deal and we are incredibly happy with it. We believe it is excellent for our shareholders, for consumers, and for the entertainment industry.”
Greg Peters explained that the value of the acquisition is based on three phases: organic growth, maximizing the Warner and HBO catalog, and future IP expansion. Regarding HBO, he stated: “HBO is an incredible brand with an incredible history. It represents prestige television. We want to double down on that proposition.”
Sarandos added: “We didn’t buy this company to destroy its value. We are going to continue releasing movies in theaters just as Warner Bros. did.”
Regarding regulatory approval, Peters clarified: “We are very confident that regulators should and will approve the deal. At the end of the day, it is pro-consumer, pro-creator, pro-worker, and pro-growth.”
4. What does Donald Trump think about this war over Warner and HBO?
The President of the United States, Donald Trump, has publicly expressed his intention to participate in the regulatory review of the Netflix-Warner deal, arguing that the streaming giant already has a “very large market share.”
“The deal could be a problem due to the size of the resulting giant. They have a very large market share. And when you add Warner Bros, that share increases enormously. So I will participate in that decision.”
This political stance appears to favor Paramount, as its offer is backed by Affinity Partners, an investment firm led by Jared Kushner, Trump’s son-in-law, as well as sovereign funds from Saudi Arabia, Qatar, and Abu Dhabi.
5. What regulatory and legal risks do both offers face?
The agreement between Netflix and Warner includes billion-dollar clauses: if Warner accepts a higher offer (like Paramount’s), it must pay $2.8 billion to Netflix. If the agreement fails to obtain regulatory approval, it will be Netflix who must pay $5.8 billion to WBD.
Ellison criticized the barriers Netflix could face: “Saying that streaming is not a market is a bit like looking at the beverage industry and saying that Coca-Cola and Pepsi can merge because Budweiser is their substitute.”
6. Why could this dispute change the streaming industry?
Beyond the size of the offers, the backdrop is strategic. Netflix seeks to consolidate its power in global streaming, while Paramount aims to build a complete multimedia conglomerate, with film, TV, news, and digital platforms.
Netflix’s agreement has also raised concerns in Hollywood about whether it will continue releasing films in theaters. Sarandos responded: “We are deeply committed to releasing those films exactly the same way they are released now. We did not buy this company to destroy that value.”
7. Who is better positioned to win the war for Warner and HBO?
Netflix has a market capitalization of more than $412 billion, compared to Paramount Skydance’s $15 billion. But Ellison’s political and financial backing is strong. Additionally, Netflix insists that its proposal does not involve job cuts, while Paramount has mentioned synergies of $6 billion, which could imply layoffs.
Sarandos concluded his participation in the conference saying: “We believe this deal with Warner Bros. is good for our shareholders, for consumers, and for creators. It is good for the entertainment industry as a whole, because we are creating and protecting jobs in production, and we are going to continue growing the business.”
8. What will happen to HBO and the Warner catalog?
One of the most coveted assets is HBO, a prestigious television brand. According to Netflix: “We want HBO to double down on the things people have loved for 50 years… They don’t need to become a general entertainment brand.”
Netflix also plans to continue exploiting Warner’s catalog of series and films, as well as integrating its studios, channels, and brands into its ecosystem.
9. What’s next in this battle?
A complex regulatory review is approaching. Political pressure, global economic interests, and public perception will be decisive. The outcome will determine not only the future of Warner, HBO, Netflix, and Paramount, but also the direction of the entire streaming and entertainment industry in the post-pandemic era.
Hollywood is watching closely as shareholders take the floor. The war for Warner is just beginning.
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10. What franchises would Netflix gain by acquiring Warner and HBO?
The possible union of the Netflix and Warner Bros. Discovery libraries would consolidate one of the largest content collections in the history of entertainment. Netflix already owns high-impact titles such as:
- Stranger Things
- The Witcher
- Bridgerton
- Money Heist
- Wednesday
- Squid Game
Meanwhile, Warner Bros. Discovery controls legendary franchises such as:
- Harry Potter
- The Lord of the Rings
- Game of Thrones
- Friends
- The Big Bang Theory
- DC Universe
- The Sopranos
- Looney Tunes
- Tom and Jerry
11. How much does Netflix gain in the deal with Warner Bros. Discovery?
According to revenue data as of September 30, 2025, the deal with Warner allows Netflix to acquire:
- Warner Bros. Streaming (HBO Max, etc.): $8.1 billion in revenue.
- Warner Bros. Studios (films, TV, video games, and experiences): $9.4 billion in revenue.
This represents a combined total of $17.5 billion in new assets for Netflix. However, there is one important part that is not included in the acquisition: Warner Bros. Discovery’s television channels such as CNN, TNT, and others, whose annual revenue was $13.5 billion.
The corporate battle between Netflix and Paramount to acquire the assets of Warner Bros. Discovery (WBD), including the iconic HBO brand, has shaken the foundations of the streaming and entertainment industry Read More
