The media industry is witnessing a tense battle for control of Warner Bros. Discovery (WBD), with Netflix and Paramount Skydance emerging as the two main contenders. Netflix initially announced an $83.7 billion deal to acquire WBD’s studios, HBO, HBO Max, and gaming divisions. Soon after, Paramount Skydance, led by CEO David Ellison, launched a hostile all-cash bid of $30 per share, valuing WBD at $108.4 billion, directly appealing to shareholders with promises of greater certainty and value.

Paramount argues its all-cash offer surpasses Netflix’s combination of cash, stock, and a stake in WBD’s Global Networks spin-off, which they say undervalues the company, particularly the TV networks division. Paramount emphasizes its financing is “air-tight,” backed by $41 billion in equity from the Ellison family and RedBird Capital, alongside $54 billion in debt commitments. The company also stresses a shorter, more certain path to regulatory approval, having filed for Hart-Scott-Rodino (HSR) clearance in the United States and notifying the European Commission.

Political scrutiny is intensifying. Former President Donald Trump indicated he will actively review the Netflix-WBD deal, expressing concerns about potential monopoly power, despite a cordial meeting with Netflix co-CEO Ted Sarandos. Democratic lawmakers, including Reps. Sam Liccardo and Ayanna Pressley, have flagged national security concerns over foreign-backed financiers involved in Paramount’s bid, such as sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, alongside Jared Kushner’s Affinity Partners, which is supported by the Saudi Public Investment Fund. They have called for a notice to the Committee on Foreign Investment in the United States (CFIUS) to ensure a full national security review. Paramount contends the foreign investors have waived governance rights, making such a review unnecessary.

Industry voices have also expressed concern. Michael O’Leary, CEO of Cinema United, warned that large studio consolidations historically reduce theatrical film output by up to 43%, disproportionately affecting smaller and medium-sized productions critical for sustaining the industry beyond blockbuster releases.

Ellison criticized WBD’s handling of the sale process, stating that the company failed to provide markups of Paramount’s documents or engage in real-time negotiations. Paramount urges shareholders to tender their shares to demonstrate preference for the superior all-cash offer, with the WBD board required to review and issue a recommendation within 10 business days.