Media Law: Netflix and Paramount’s Bidding War for Warner Bros

Written by Daniela Contreras, Shriya Alli, Sofia Matute, and Savannah Miller

Edited by Savannah Miller and Anna Ramesh

A high-stakes bidding war started between streaming platforms Netflix and Paramount Skydance over Warner Bros. Discovery, a huge media company with vast global entertainment popularity. Warner Bros. owns a plethora of film studios, television networks, and streaming platforms, making it a highly valuable acquisition target. Warner Bros. is seeking acquisition because of a great amount of debt from past mergers, streaming losses on HBO Max, pandemic theater hits, and industry consolidation needs. Initially, Warner Bros. agreed to merge with Netflix in a friendly 82.7 billion dollar deal negotiated and approved by its board for a better price and clearer strategy that included buying Warner Bros. Discovery's main studio and streaming parts, but shortly after, Paramount made a separate, hostile takeover bid directly to Warner Bros. Paramount's shareholders, attempting to override Warner Bros.' management and outbid Netflix through offering shareholders more cash directly, sparked a fight over who controls Warner Bros. A hostile takeover bid is an offer by one company to acquire another without the approval of the target company's board of directors, usually by making a direct offer to the company's shareholders. It is deemed hostile because the acquisition is opposed by the company's management. Warner Bros' board told shareholders to say no to Paramount and stick with Netflix. Netflix's proposed acquisition of Warner Bros. has now been approved by Warner Bros.' board but still needs a shareholder vote for final approval.

Moreover, the deal requires antitrust review under the 1976 Hart-Scott-Rodino-Act meaning federal regulators like the Department of Justice, which handles civil antitrust cases and criminal violations, and Federal Trade Commission, which focuses on consumer protection and merger competition analysis, will determine whether the merger would reduce competition. The process starts when Netflix and Warner Bros. send detailed reports about their business and market share. Regulators review this data and may ask for more information with a second request if they see problems. Regulators seek to stop mergers from hurting competition or creating monopolies which might violate antitrust laws. A Netflix-Warner Bros. combination might give one company too much power in streaming and entertainment, cutting viewer choices. As both the shareholder vote, expected by the second quarter of 2026, and regulatory review are still in progress, the deal is not expected to close before mid-2026. However, the shareholders are expected to reject the Paramount offer after unanimously meeting to discuss Warner Bros.' best interest.

Since its founding in 1923, Warner Bros. has long been considered a media giant. With developed and acquired assets like HBO Max, Looney Tunes cartoons, and DC Comics, Warner Bros. has solidified itself as an influential player in the global media industry. However, Warner Bros. is not the first media juggernaut to cause controversy through its desire to merge. Historically, similar cases have mirrored the bidding war between Netflix and Paramount Skydance over Warner Bros. including the bidding war between the Walt Disney Company and Comcast over 21st Century Fox.

The ongoing merger and acquisition of Warner Bros. Discovery is a case that puts Netflix and Paramount Skydance in the spotlight for a bid on one of the most popular entertainment production companies. The case in itself is a battle of control, putting into question where most Americans will be getting their entertainment sourced from and who has the authority for media control on a mass level. That being said, the hostile takeover has political undertones as President Donald Trump has claimed he will be involved and will have oversight of the case despite the fact that Congress possesses the legal authority to oversee mergers through its ability to regulate interstate commerce, given the scale of the proposed merger. Additionally, Affinity Partners, a U.S.-based private equity firm formed in 2021 by Jared Kushner, a former White House advisor and son-in-law to President Trump, is an investor for Paramount, showcasing a company with close personal and familial ties to the President. Moreover, the result of this bidding war would also put into question the control of other smaller streaming platforms such as Disney and Hulu. 

From 2017 to 2019, the Walt Disney Company engaged in a bidding war with Comcast over 21st Century Fox in an attempt to acquire Fox's entertainment assets. Comcast entered the bidding war with a higher, all cash offer after Disney entered their lower, initial bid. At the time, Comcast already controlled a major cable and broadband distribution network, Xfinity, so Comcast was at a disadvantage since their deal needed to meet regulatory concerns. The initial proposed bid by Comcast raised concerns and scrutiny over antitrust laws since Comcast would acquire an even larger portion of the market share, leading to a larger disadvantage for rival distribution companies and the potential for higher prices for consumers. Concerns over antitrust regulations in the Comcast deal lead to uncertainty and risk for investors and stakeholders alike, moving Fox towards the acceptance of an all-stock transaction from the Walt Disney Company. In a transaction valued at over $71 billion dollars, Disney acquired most of Fox's entertainment business such as FX Network, National Geographic, and 20th Century Fox film and television studios. The bidding war between Disney and Comcast mirrors the Paramount and Netflix bidding war since the boards of Warner Bros. and Fox need to weigh the value and risk of each deal. If regulatory concerns persist and a legal challenge is formally executed, the proposed deal could fall through.

The ongoing merger and acquisition of Warner Bros. Discovery is a case that puts Netflix and Paramount Skydance in the spotlight for a bid on one of the most popular entertainment production companies. The case in itself is a battle of control, putting into question where most Americans will be getting their entertainment sourced from and who has the authority for media control on a mass level. That being said, the hostile takeover has political undertones as President Donald Trump has claimed he will be involved and will have oversight of the case despite the fact that Congress possesses the legal authority to oversee mergers through its ability to regulate interstate commerce, given the scale of the proposed merger. Additionally, Affinity Partners, a U.S.-based private equity firm formed in 2021 by Jared Kushner, a former White House advisor and son-in-law to President Trump, is an investor for Paramount, showcasing a company with close personal and familial ties to the President. Moreover, the result of this bidding war would also put into question the control of other smaller streaming platforms such as Disney and Hulu. 

As a result, antitrust reviews are underway to prevent the entire monopolization of the entertainment industry under major streaming platforms. Additionally, other impacts include how theatrical releases will be received alongside streaming opportunities as entertainment companies compare how a release might perform on streaming platforms rather than at the box office, considering performance and viewership. The bidding war's current impact also includes Hollywood Trade Groups who vocally oppose the Netflix bid as it may negatively impact the content of production and work opportunities. Other reactions and impacts are demonstrated through shares in the stock market and in noticing what investors are siding with as Netflix's stock has fallen 28% since October 2025 citing debt concerns from the Warner Bros merger. Ultimately, should Warner Bros. shareholders and the U.S. government finalize the proposed merger between Warner Bros. and Netflix, consumers should lookout for changes in their streaming platforms and perhaps be wary of the continued consolidation of the entertainment industry.