Asger Risom
A high-stakes takeover fight has erupted in Hollywood, with Paramount Skydance and Netflix vying to acquire Warner Bros Discovery
A high-stakes takeover fight has erupted in Hollywood, with Paramount and Netflix vying to acquire Warner Bros Discovery in a deal that could reshape the balance of power across film, television and streaming.
Reuters reports that the company, already through three major reorganizations since 2000, now faces a potential fourth — and its future direction hangs on who wins the bidding war.
The contest comes at a time when studios are battling fierce shifts in audience behavior and runaway content costs, making control of WBD’s vast library and brands a valuable strategic prize.
Competing for the top spot
According to Reuters, Paramount Skydance launched a hostile $108.4 billion bid, aiming to outmaneuver a competing offer from Netflix. Should Paramount succeed, the combined company would surpass Disney in U.S. and Canadian box-office share — a milestone that would redefine studio hierarchies.
Reuters, citing Sensor Tower data, notes that while Disney+ retains a strong global presence, Netflix and HBO Max outperform it in user-engagement measures. Gaining HBO’s slate — from “Game of Thrones” to “The Sopranos” — would dramatically bolster Paramount’s position in prestige television and streaming.
The attempted buyout reflects a broader industry trend: only a handful of players may have the scale to compete in the next decade.
The YouTube factor
Another reason the sale matters is YouTube’s overwhelming reach. Reuters reports that the platform has roughly 2.9 billion global mobile users, more than the combined total of Netflix, Disney+, Paramount+, HBO Max and Peacock.
Nielsen data cited by Reuters shows YouTube capturing 12.9% of U.S. streaming viewership in October, compared with Netflix’s 8% and Warner Bros Discovery’s 1.3%. As YouTube’s dominance grows, owning more premium content becomes essential for competitors trying to hold audience share.
A defining Hollywood moment
Warner Bros Discovery shares rose more than 4% on Monday, Reuters said, reflecting investor expectations that a sale would signal one of the biggest realignments the industry has seen in years. The company’s market value has more than doubled since early September, when interest from Paramount first leaked.
Analyst Ross Benes of eMarketer told Reuters that either acquisition would produce “significant concentration in content spending,” likely prompting antitrust scrutiny, especially since both bidders already rank among the world’s heaviest investors in original programming.
The debt problem
A final factor shaping the deal is Warner Bros Discovery’s substantial debt — roughly $35 billion, per Reuters. Paramount is expected to assume around $30 billion should its offer succeed, while Netflix would take on an estimated $10 billion.
That burden, rooted in the 2022 WarnerMedia–Discovery merger, remains one of the biggest obstacles to any sale and a key reason the outcome could determine which companies retain competitive scale in the streaming era.
Sources: Reuters
