News Digest: The Warner Bros-Netflix-Paramount Saga – An Update
December 16, 2025
The situation regarding the Warner Bros. Discovery (WBD) deal is highly dynamic, characterized by an ongoing bidding war and significant recent developments:
The competition for WBD’s valuable assets, including HBO, the film studio, and the DC Universe, getting more and more heated. What we know so far is that, while Netflix offered a deal valued at $72 billion (equity value) for WBD’s film/TV studios and streaming businesses (HBO Max), rival Paramount Skydance launched a hostile takeover bid for the entire company (including cable networks like CNN) for a higher enterprise value of $108.4 billion.
Recent reports indicate the WBD board is leaning toward rejecting the Paramount Skydance bid and advising shareholders to support the original Netflix agreement. The board’s concerns reportedly center on:
- Financing Reliability: Unease over the structure of Paramount’s funding, which relies heavily on a revocable trust tied to the Ellison family, raising questions about the certainty of the cash.
- Regulatory Uncertainty: Concerns that the total company buyout by Paramount would face a lengthier and more restrictive regulatory review period.
In a major twist, Jared Kushner’s investment firm, Affinity Partners, has publicly withdrawn its financial backing from the Paramount Skydance hostile bid. While the bid is still supported by the Ellison family, RedBird Capital, and wealth funds from three Persian Gulf states, Kushner’s exit reduces the bid’s political capital, especially given President Donald Trump’s stated intent to be “involved” in the regulatory scrutiny of the deal.
Both deals face intense regulatory scrutiny. Netflix co-CEOs recently sent a letter to employees reaffirming their commitment to the deal, arguing it is necessary to compete in the broader media landscape (citing YouTube’s dominance) and vowing to continue Warner Bros.’ legacy of releasing movies in theaters—a strategic pivot from Netflix’s historic streaming-first model.
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