Hollywood battle of the giants: Paramount defeats Netflix in the battle for Warner Bros

One of the most dramatic acquisition battles in the history of the media industry came to a surprising conclusion on Thursday, February 26. Warner Bros announced that Paramount Skydance's offer was more advantageous than the existing agreement with Netflix – and the streaming giant subsequently withdrew from the battle.

The story of this acquisition began in December this year, when Warner Bros signed an agreement with Netflix worth approximately $83 billion. Netflix was to acquire the film studio, HBO, and the Max streaming platform. However, Paramount refused to give up and came up with an aggressive offer for the entire company, including the CNN news station and the TBS and Discovery television channels. The latest version of Paramount's offer values Warner Bros. at approximately $111 billion, including debt, offering $31 per share in cash.

Paramount also promised a $7 billion fee if regulators blocked the transaction, which significantly reduced the risk for Warner Bros. shareholders. Netflix, on the other hand, stated that under such conditions, the deal would not be "financially attractive" to it and withdrew from the battle.

The resulting merger would combine two of the last five remaining Hollywood studios and create a media giant comparable to Disney or Comcast. Paramount's portfolio would add brands such as Harry Potter, Superman, HBO, and the series Succession and The White Lotus.

However, the road to closing the deal will not be easy. The US Department of Justice has already launched an antitrust review, and similar steps are expected in other countries. The WBD shareholder vote is scheduled for March 20.

The whole battle for Warner Bros. is symptomatic of broader consolidation in the media industry. After a decade of expansion and investment in content, the sector is entering a phase where size, monetization capabilities, and cost discipline are decisive factors. The streaming market is gradually becoming saturated, subscriber growth is slowing, and pressure on profitability is mounting.