NEW YORK CITY, New York: A week after Warner Bros. Discovery agreed to sell itself to Netflix, the media giant is now at the center of a takeover fight, with Paramount launching a hostile bid that surpasses Netflix's offer and appeals directly to Warner shareholders.

Paramount's move disrupts a friendly US$72 billion agreement with Netflix. It sets up a clash between two companies that each view Warner's vast portfolio, including Warner Bros. Pictures, HBO, and the Harry Potter franchise, as central to strengthening their positions in the streaming and studio landscape.

"Whichever media company, if any, ultimately secures (Warner), controls the calculus of the streaming wars and so much more," said Mike Proulx, vice president and research director at Forrester.

Both bids will face regulatory scrutiny, and President Donald Trump has already weighed in publicly, adding another layer of uncertainty.

A look at the competing offers

Warner CEO David Zaslav signaled as early as October that the company was open to exploring a sale of all or parts of its business. Paramount said Monday it had made six proposals over 12 weeks before Warner accepted the Netflix bid.

After that rejection, Paramount went directly to shareholders with a hostile offer valued at about $74.4 billion, or $30 per share in cash. Unlike Netflix, Paramount is bidding not only for Warner's studio and streaming assets but also for its cable networks.

Paramount CEO Larry Ellison said the offer provides roughly $18 billion more in cash than Netflix's competing proposal.

Paramount's bid is backed by investors including Trump's son-in-law Jared Kushner and sovereign funds from Saudi Arabia and Qatar, according to a regulatory filing.

Netflix is offering a combination of cash and stock worth $27.75 per share, valuing Warner at $72 billion excluding debt, and is not bidding on cable assets such as CNN or Discovery. The Netflix deal was expected to close within 12 to 18 months following Warner's planned cable spinoff.

Shareholders have until Jan. 8, 2026, to respond to Paramount's tender offer.

A deal appears increasingly likely.

Matthew Dolgin, senior equity analyst at Morningstar, said Paramount's unexpected entry increases the chances someone will acquire Warner.

"With Paramount now also being involved formally with an offer to shareholders, it's even more likely to us that Warner gets acquired," he said, noting Netflix may choose to raise its bid.

Trump's Role and Regulatory Hurdles

Trump has already said Netflix's agreement to buy Warner "could be a problem" and indicated he plans to be involved in reviewing the deal. Paramount's CEO is the son of Trump ally Larry Ellison, and federal regulators under Trump approved Paramount's $8 billion merger with Skydance earlier this year.

Regulators may view the Netflix bid differently from Paramount's. A Netflix–Warner combination would unite two major streaming platforms and might raise concerns about market dominance. Paramount's streaming footprint is smaller, but regulators could scrutinize the consolidation of two legacy Hollywood studios.

A Wave of Consolidation

The battle for Warner comes amid accelerating consolidation in Hollywood as streaming growth slows. Warner Bros. Discovery was formed in 2022 when AT&T spun off WarnerMedia and merged it with Discovery. Amazon bought MGM in 2021, and Disney acquired Fox entertainment assets in 2019.

"This is the state that we're in right now in the streaming wars saga," Proulx said. "And in 2026 we'll see continued consolidation."