Paramount Skydance, led by David Ellison, clearly has no intention of giving up on acquiring [the company/organization].Warner Bros. Discovery Warner Bros. Discovery's (WBD) ambitions. The company announced on Thursday...AnnounceThe deadline for its all-cash takeover offer for Warner Bros. has been extended to February 20, 2026.
The hostile takeover deal was originally set to expire on January 21, but faced with competing offers from Netflix and ongoing legal proceedings, Paramount Skydance Entertainment chose to extend the battle in an attempt to persuade shareholders to accept its $1084 billion acquisition offer.
Netflix wants to "weed out the bad and keep the good," while Paramount wants to "take the whole thing."
The most interesting aspect of this merger is that the two bidders employed drastically different strategies.
In December 2025, Netflix proposed an $827 billion acquisition deal. While the amount is relatively low, Netflix's plan is a "split acquisition." If the deal goes through, Netflix will acquire Warner Bros. Explore's core assets, including Warner Bros. film studios, New Line Cinema, HBO and HBO Max, as well as theme parks and game studios, and also some cable channels (such as TNT).
As for the reality programming assets originally belonging to the Discovery system and the news division (collectively known as "Global Networks") held by Warner Bros. Discovery, they are not included in Netflix's acquisition.
In contrast, Paramount made an all-cash offer of $1084 billion just days after Netflix's proposal, aiming to acquire the "entire" Warner Bros. Discovery ecosystem.
Silver bullet offensive vs. monopoly concerns
To increase its chances of success, Paramount Skydance not only extended its offer period but also filed a lawsuit against Warner Bros. Discovery in January, accusing the Warner Bros. Discovery board of directors of failing to adequately explain why it favored accepting the lower-priced Netflix offer.
Paramount's argument is as follows:
• More money:An all-cash acquisition is more beneficial to shareholders.
• It's easier to pass regulations:Netflix already dominates the streaming market, and if it were to acquire HBO and Warner Bros. Studios, it would likely face significant antitrust resistance. In contrast, Paramount's acquisition of Warner Bros. Discovery would not pose a further market monopoly issue.
However, Warner Bros. Discovery countered that Paramount's funding for the deal was "insufficient" and expressed uncertainty about whether the company could actually complete the transaction.
The Ellison Family's Ambition and Political Power Struggles
David Ellison, with the financial backing of his father Larry Ellison (founder of Oracle), successfully merged Skydance Entertainment with Paramount Pictures. At the time, to obtain FCC (Federal Communications Commission) approval, he promised to appoint an inspector to ensure CBS News presented a "diverse perspective" and guaranteed that the merged company would not establish a DEI (Diversity, Fairness, and Inclusion) program—measures seen as a gesture of goodwill towards the Trump administration.
Although the merger with Paramount Pictures went smoothly, the attempt to acquire the much larger Warner Bros. Exploration is clearly more difficult than the Ellison family had anticipated.
Analysis of viewpoints
Warner Bros.' preference for acquiring Netflix is not hard to understand. Their biggest headache right now is the drag from declining traditional television assets (cable TV advertising revenue). Netflix's proposal is essentially a "surgical operation" for Warner Bros., preserving their most valuable IPs (Harry Potter, DC, HBO series), while keeping the mess (traditional channels) out of Netflix's financial statements, and strengthening Netflix's film library and the richness of its top-tier IPs.
In contrast, while Paramount Skydance's proposed acquisition offer is lucrative, it implies a merger of two traditional media companies (Paramount + Warner Bros. Discovery), creating a behemoth with countless traditional television channels and two news networks (CBS + CNN). Is this merger a powerful alliance, or simply two drowning people embracing each other? This is perhaps the biggest concern for the Warner Bros. Discovery board.
From a regulatory perspective, Paramount is correct. Netflix's acquisition of HBO essentially signaled the end of the streaming wars, and regulators will undoubtedly scrutinize it closely.
