Depending on who you ask, Netflix’s acquisition of Warner Bros. Discovery is either the death of Hollywood (if you’re a writer, director, or anyone who actually works in Hollywood) or a golden opportunity (if you happen to be a Netflix stockholder). However, the streaming giant’s plans might be jeopardized by a surprise move from a rival studio. According to The Hollywood Reporter, Paramount is making a hostile bid for Warner Bros.’s stock options.

Paramount chief David Ellison didn’t hold back when discussing the reasons for the hostile bid, saying that Netflix “made an inferior offer” for Warner Bros. “WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” he stated. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value and a more certain and quicker path to completion.” It appears that Paramount may have several strategies that could shift the balance in its favor and significantly reshape Netflix’s future — and Hollywood — in the process.

If Paramount Wins Warner Bros., It’ll Strike a Major Blow to Netflix’s Cultural Impact

Since its inception, Netflix has disrupted Hollywood traditions. It launched the “Streaming Wars”, sending every studio into a frenzy to produce its own streaming service and creating a bubble that eventually burst. Its CEO, Ted Sarandos, has an unusual aversion to theatrical releases of its films, despite those films having the kind of astronomical price tag you’d expect from a big blockbuster release. Yet it’s also produced projects that are genuine pop culture landmarks, including Stranger Things, House of Cards, and <em>BoJack Horseman</em>. If Warner Bros. fell under the Netflix umbrella, it would arguably become one of the most significant forces in the industry.

The Paramount deal challenges that notion and raises the possibility of an even more powerful entity. While Hollywood used to be defined by a collection of studios, mega-mergers are increasing certain studios’ power. Whether it’s Disney buying 20th Century Fox or Amazon absorbing MGM, executives with deep pockets are eager to acquire certain studios for their ability to exploit intellectual property. If Paramount acquires Warner Bros., it will become one of the biggest studios in the world and overshadow Netflix. Furthermore, Paramount has dealt a significant blow against Netflix by signing a deal with Stranger Things creators Ross & Matt Duffer, robbing the streamer of one of its biggest creative assets.

Paramount Wants All of Warner Bros. — Not Just Its Movies

Amidst all the commotion over the Warner Bros./Netflix/Paramount situation is the fact that Netflix would only acquire Warner Bros.’s film library if its merger went through. In contrast, Paramount wants Warner Bros. in its entirety. This includes its movie library and TV networks such as TNT, CNN, HGTV, the Food Network, and Discovery. Additionally, Paramount could potentially acquire HBO and HBO Max, which would further diminish Netflix’s standing as it wouldn’t be the biggest streaming player anymore.

While some studios might hesitate to absorb a collection of television channels during a time when linear television faces significant challenges, Paramount is sending a strong message: “We want WB, baggage and all.” The fact that it’s willing to take on potential debt shows how serious the Ellisons are about acquiring Warner Bros. This strategy is also very business savvy: to promote upcoming films and streaming services, commercial time is often dedicated to interconnected networks. Therefore, if the deal goes through and Paramount promotes a new movie, it can do so on both Warner Bros.’ channels as well as its own.

Compared to Netflix’s unpredictable approach—where titles can be removed from the streamer’s library at any moment or shows can be canceled if they don’t meet specific algorithmic thresholds—Paramount is attempting to build a long-term plan for media dominance. Long-term planning signals growth, which is essential in Hollywood’s often cutthroat environment.

There’s One Major Obstacle in Paramount’s Pursuit of Warner Bros.

By now, many people might be wondering why Warner Bros. decided to accept Netflix’s offer and pass by Paramount. The answer lies in a potential feud between David Ellison and Warner Bros. Discovery CEO David Zaslav, which reportedly began over South Park. Paramount and Warner Bros. allegedly had a handshake agreement to share streaming rights over the animated series for ten years. Ellison apparently reneged on this agreement, angering Zaslav enough to overlook Paramount’s initial offer during the bidding wars for Warner Bros. Paramount COO Andy Gordon even mentioned feeling excluded from discussions by stating, “Throughout this entire process, we never received a single markup of the documents.” It’s hard to envision Zaslav changing his mind even if Ellison offers more cash.

You might think that a Paramount-Warner Bros. deal would be straightforward given that Ellison has connections with President Donald Trump. However, this assumption would be incorrect as Trump criticized Ellison’s leadership at Paramount after an interview with Marjorie Taylor Greene. This situation contrasts sharply with Ellison convincing the studio to greenlight<em> Rush Hour 4</em>, indicating potential complications as FCC chairman Brendan Carr has shown readiness to intervene on Trump’s behalf — especially following Jimmy Kimmel’s brief suspension.

Clearly both Paramount and Netflix stand much to gain or lose depending on how this bidding war for Warner Bros. unfolds. Paramount’s hostile bid demonstrates that it isn’t backing down without a fight and is prepared to leverage every advantage it possesses to win. Time will reveal whether these advantages will work in its favor, but one thing is certain: regardless of who prevails in this battle, Hollywood will never be the same.