In what may be remembered as the deal that reshaped the media industry, Warner Bros. Discovery has become the target of a historic bidding war that pits streaming giant Netflix against the newly combined Paramount-Skydance—with sovereign wealth funds, tech billionaires, and even Jared Kushner's investment firm backing billions of dollars in competing offers.

The stakes could hardly be higher. Whoever wins control of HBO, Warner Bros. Studios, CNN, and the broader Discovery portfolio will emerge as a dominant force in global entertainment for decades to come.

How We Got Here

Warner Bros. Discovery, formed from the 2022 merger of WarnerMedia and Discovery, has been a troubled company almost from the start. CEO David Zaslav struggled to integrate two very different corporate cultures, manage crushing debt, and navigate the streaming wars—all while Wall Street grew increasingly impatient.

By October 2025, the company formally put itself up for sale. Within weeks, three serious bidders emerged: Netflix, Comcast's NBCUniversal, and the newly formed Paramount-Skydance combination led by David Ellison.

The Netflix Offer

In late November, Netflix announced a binding agreement to acquire Warner Bros.' studio operations, HBO, and HBO Max for $72 billion, with an enterprise value of approximately $82.7 billion. The deal values WBD at $27.75 per share.

Critically, Netflix's offer excludes WBD's cable channels—including CNN, TNT, TBS, and the Discovery networks. These assets would be spun off to WBD shareholders, who would own a new, standalone cable company.

For Netflix, the attraction is clear: HBO's prestige content and the Warner Bros. studio's production capabilities would significantly enhance its content library and reduce reliance on third-party licensing.

"HBO is the crown jewel of the television industry. Combining that brand with Netflix's global distribution would create something truly unprecedented."

— Michael Nathanson, Senior Analyst at MoffettNathanson

The Paramount Counter-Attack

Just days after Netflix's deal was announced, Paramount-Skydance launched a hostile tender offer for WBD. The all-cash bid of $30 per share values the company at approximately $108.4 billion—representing a significant premium to Netflix's offer.

The Paramount bid is backed by an extraordinary coalition of financiers:

  • Larry Ellison: Oracle's founder and David Ellison's father personally guaranteed $40.4 billion of the equity financing
  • Sovereign wealth funds: Saudi Arabia's PIF, Qatar's QIA, and Abu Dhabi's ADIA are contributing significant capital
  • Affinity Partners: The investment firm founded by Jared Kushner is participating in the financing
  • Bank financing: Bank of America, Citigroup, and Apollo Global Management are providing $54 billion in debt

WBD's Response

Warner Bros. Discovery's board has formally rejected the Paramount offer and unanimously reaffirmed its support for the Netflix transaction. In a letter to shareholders, the board argued that Netflix's offer provides "greater certainty and superior value" when accounting for execution risk.

But the hostile tender offer means the decision ultimately rests with shareholders, not the board. WBD investors have until January 21, 2026 to decide whether to tender their shares to Paramount for $30 cash or stick with the Netflix deal.

The Strategic Implications

The outcome will have profound implications for the media industry:

If Netflix wins: The streaming giant would control the most prestigious brand in television (HBO), a major film studio, and the ability to produce content at scale. The combined entity would have over 300 million global subscribers and unmatched content production capabilities.

If Paramount-Skydance wins: A new media conglomerate would emerge with Paramount's film studio, CBS broadcast network, and cable assets plus HBO, Warner Bros., CNN, and Discovery's reality programming. David Ellison would become one of the most powerful figures in entertainment.

The Stock Has Already Moved

Warner Bros. Discovery shares have soared more than 170% in 2025, with the market capitalization climbing from roughly $25 billion at year's start to nearly $72 billion. Much of the current value reflects takeover speculation rather than fundamental improvement in the business.

This means the stakes for shareholders are enormous. Accepting the wrong offer—or seeing both deals fall through—could result in substantial losses as the stock rerates lower.

What Happens Next

Several key dates and events will determine the outcome:

  • January 21, 2026: Deadline for shareholders to tender shares to Paramount's $30 offer
  • Regulatory review: Both transactions would require antitrust approval, with the DOJ and FTC likely to scrutinize media concentration
  • Shareholder vote: Netflix's deal requires WBD shareholder approval at a special meeting
  • Potential sweeteners: Either bidder could raise their offer to gain advantage

The Bottom Line

This is the most consequential media deal since the formation of Disney-Fox, and its outcome will shape the entertainment industry for a generation. For WBD shareholders, the choice is stark: take Paramount's higher cash price today, or bet on Netflix's strategic vision and accept the execution risks that come with it.

For the broader industry, the bidding war confirms what many suspected: the streaming era has entered its consolidation phase. The winners of this scramble for scale will likely dominate entertainment for decades. The losers may not survive as independent entities.