The bidding war for the core assets of Warner Bros. Discovery (WBD), including Warner Bros. Pictures, HBO, and the DC Universe, has reportedly narrowed to two powerhouse contenders: streaming giant Netflix and legacy studio Paramount.
Paramount / Netflix
While Netflix kicked off the competition by agreeing to a massive $82.7 billion deal on December 5th, Paramount has now entered the fray with a counter-bid and a massive promise that could swing the crucial favor of regulators and cinema owners: a major commitment to theatrical distribution.
Paramount’s Promise: 30+ Movies in Theaters Annually
Paramount Global, led by CEO Bob Bakish, has placed its bid ($108.4 billion for all WBD, including the cable channels) with a clear, public commitment to the cinema industry, directly challenging Netflix’s streaming-first model.
The studio has vowed to release over 30 movies in theaters annually if it successfully acquires the Warner Bros. assets. This commitment is a direct response to the industry-wide fear that Netflix would inevitably shorten or eliminate the traditional exclusive theatrical release window for films like Dune and The Batman.
Also, Ellison told CNBC that “this is an existential moment for our business, and we believe that what we’re offering is better for Hollywood, it’s better for customers, and it’s pro-competitive.”
The Netflix Factor: A Streaming Goliath
Netflix initiated the bidding war with its staggering offer, driven by a need to acquire legacy IP and a massive content library to secure its long-term dominance.
The Price Tag: Netflix’s initial bid, valued at approximately $82.7 billion, would give it control of the DC Universe, the Harry Potter franchise, HBO’s library, and over a century of Warner Bros. film and television archives.
The Threat: The core concern surrounding a Netflix acquisition is the future of cinema. While Netflix has stated it will honor pre-existing theatrical commitments, its history suggests a long-term goal of integrating all content directly into its streaming platform, potentially sidelining the theatrical business model. However, for example, IMAX has long-term agreements with Warner Bros. that guarantee the theatrical release of their major blockbusters in the IMAX format, so there shouldn’t be any problem there.
Moreover, Netflix co-CEO Ted Sarandos has attempted to assuage widespread industry anxiety regarding the streamer’s potential acquisition of Warner Bros. Discovery (WBD), asserting that Netflix will largely maintain Warner Bros.’ existing theatrical film release model once the deal is finalized.
In a recent statement aimed directly at cinema owners and regulators, Sarandos positioned the acquisition not as a disruptive takeover, but as an embrace of the traditional business: “When this deal closes, we are in [the theatrical] business, and we’re going to do it… We didn’t buy this company to destroy that value.”
What Happens Now?
The bidding war is now set to be determined by two factors: price and strategy. While Netflix has the financial capability, Paramount is offering a strategy that is arguably more politically palatable to regulators. If Paramount wins, the WBD assets would merge with Paramount’s existing studio infrastructure (including Paramount Pictures and CBS), creating a unified entity that still prioritizes large-scale theatrical releases alongside its streaming service.
The decision is expected to be finalized by the end of 2025 or early in 2026, and the outcome will forever change the landscape of Hollywood production and distribution.
