Jens Asbjørn Bøgen
It’s a term often used about financial clashes, but do you even know, what it means?
A high-stakes fight for control of Warner Bros Discovery has erupted across Hollywood, drawing in some of the world’s largest media players.
Months of negotiations have now tipped into open confrontation as two radically different bidders circle the century-old studio.
After Warner Bros. Discovery announced Friday, that they had accepted a bit from Netflix, Paramount Monday said in a statement, that it will now launch an “all-cash” tender to acquire Warner Bros. Discovery.
While the corporate drama continues to unfold, the clash has also illuminated a term often heard in financial thrillers but less understood outside Wall Street:
The hostile takeover.
What is a hostile takeover?
A hostile takeover occurs when a company attempts to buy another without the approval of the target’s leadership.
Instead of negotiating quietly with executives, the bidder appeals directly to shareholders, offering a price intended to force a sale despite management’s objections.
Unlike friendly mergers, which rely on board-level endorsement, hostile approaches seek to bypass that gatekeeping entirely.
This scenario is now playing out after Paramount’s Skydance unit, led by chief executive David Ellison, shifted from private talks to a direct pitch to Warner Bros investors.
The effort followed Warner Bros’ decision to advance separate negotiations with Netflix.
Rival paths forward
According to reporting from BBC News, Netflix has proposed taking over Warner Bros’ studio and streaming properties, leaving the remainder of the company to operate as a standalone entity.
The streaming giant values those assets at $82.7bn including debt, offering a blend of cash and equity that it says equates to roughly $27.75 per share.
Paramount, however, is pursuing the entire business, including its weakening pay-TV networks. Its all-cash offer values Warner Bros at $108.4bn and promises $30 per share. Paramount argues this certainty is preferable to Netflix’s mix-and-match plan.
Both proposals could take months to complete and would likely face regulatory review in the US and Europe.
What comes next
Regulators will weigh how each plan affects competition, from children’s programming to news to movie distribution. Political dynamics may also play a role, with scrutiny on the Ellison family’s ties to Donald Trump.
For viewers, the impact remains uncertain. Pricing could rise if Netflix gains more exclusive titles, though analysts note many households already pay for both Netflix and HBO Max.
Sources: Reuters, AP, CNN, BBC, Sky News, Paramount Press Release
