Billion-Dollar Battle for Control of Warner Bros. Discovery

The race to take over Warner Bros. Discovery (WBD) has entered a tense phase after Paramount Skydance launched a hostile bid that put the streaming industry on alert. At stake is not only control of one of the world's largest studios, but also the reconfiguration of the entire global media landscape. According to CNBC, the coming weeks will decide whether WBD enters Paramount's orbit or whether Netflix manages to counter, triggering an unprecedented financial duel in the entertainment industry. Paramount Skydance has entered the competition with force, offering $30 per share, all in cash, a sum supported by $41 billion in financing. Once launched, the offer opens a 20-business-day window in which WBD shareholders can sell directly to Paramount. If Paramount manages to reach the 51% stake threshold, the company would automatically come under its control. In parallel, WBD has 10 days to issue an official response. Although the pressure is intense, WBD has already reaffirmed its position: the recommendation remains in favor of the Netflix offer, initially considered more stable. However, analysts cited by CNBC estimate that Paramount's offer could quickly gain ground, especially among investors seeking a quick and profitable exit. If Paramount starts buying shares, the pressure on Netflix will inevitably increase.

Although Netflix co-CEO Ted Sarandos has not publicly announced an increase in the offer, investors expect the platform not to let Paramount take over a strategic rival without a fight. A possible scenario, say sources cited by CNBC, is a bidding war, followed by: legal actions (lawsuits, complaints, appeals); proxy battles, which would force a general vote of WBD shareholders; resumed negotiations, if the market pressure becomes unbearable. A delicate obstacle: Any exit from the Netflix deal by WBD would entail a $2.8 billion termination fee, money that would either be requested by Netflix or absorbed by Paramount, which would force the offer to be even higher. On the regulatory side, Paramount argues that Netflix would have serious difficulties in obtaining approvals, because a Netflix-HBO Max combination would create "a dominant force in streaming, dangerous for Hollywood and consumers.” Netflix denies the accusation and says the transaction would go through without a hitch.

• The real stakes: the future of Hollywood and who will dominate global streaming

Paramount estimates savings of $6 billion, which implies massive cost cuts, and therefore possible layoffs. Sarandos pointed out this aspect, suggesting that Paramount's model is tougher. In contrast, according to CNBC, Netflix promises expansion, not cuts. In the coming weeks, WBD shareholders will face: increasing pressure from both sides; tense negotiations; possibility of a new round of bids; strong stock market volatility for WBD, Netflix and Paramount. If Paramount succeeds in taking control, Hollywood could enter a new era, with a much more aggressive conglomerate in production and distribution. If Netflix wins, it becomes the most powerful integrated player in the world, combining its global infrastructure with the Warner Bros. catalog and the HBO, DC and Discovery brands. For now, the entertainment industry can only wait for the next move, and it is clear that it will not be long in coming.