Published: March 9, 2026
After months of whirlwind drama back and forth, Paramount Skydance now appears to be coming out on top amid the bidding war for Warner Bros. Discovery. This past fall, Warner Bros. Discovery CEO David Zaslav announced the company would be going up for sale. In December of 2025, Netflix had seemingly won, having the highest bid for the company. Many months go by as Paramount Skydance CEO, David Ellison, continues to make childish comments and beg for another shot at WBD. Finally, WBD gave him another opportunity.
Netflix Backs Out: Paramount announced its “best final offer” on February 26th, and Netflix was given four days to up its bid. Netflix soon announced they had declined to raise their offer. Netflix head Ted Sarandos released a statement saying that buying WBD “was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.” He goes on to claim that Netflix’s business is healthy and growing as they will continue to drive long-term shareholder value. Netflix didn’t completely lose out, though, as Warner Bros. Discovery had to pay a $2.8 billion termination fee if their deal with WBD ever fell through. Paramount paid that termination fee for them. So, while Netflix didn’t acquire Warner Bros., they did secure a free $2.8 billion and another 14% rise in the streamer’s shares. But as Netflix backs out of the bidding war, Paramount is now poised to take over Warner Bros. Discovery.
Paramount’s Plans: Warner Bros. Discovery has agreed to a $110 billion merger with Paramount and expects the deal to close in the third quarter of 2026. Once the merger is complete, Paramount will gain all of Warner Bros. assets, including their film studios, television broadcast studios, streaming services, broadcast networks, news, sports, and all the many iconic franchises and IP. Paramount has said they plan to keep Warner Bros. Discovery’s creative teams, including James Gunn and Peter Safran, the heads of DC Studios. However, it’s been revealed that Ellison has not reached out to any of the talent over at Warner Bros. yet, so who knows if anyone will actually stick around and follow these plans when their contracts expire next year. Additionally, as happens with any company merger, many people will be fired. There’s going to be so many layoffs. The merged company is said to have approximately $79 billion in debt. Warner Bros. is a company already in debt, and Paramount is even further in debt. Putting the two together sounds like a recipe for financial disaster.
Presence in the Theatrical Industry: Paramount plans to release 30+ movies per year (roughly 15 films per studio) with 45 theatrical windows for each film. That sounds great for the theater business. However, a similar promise was made when Disney acquired 20th Century Fox, resulting in their annual output falling from 14 films in 2017-2018 to just 3 in 2023, 4 in 2024, and 6 in 2025. Theater exhibitors now predict a similar decline in releases if Paramount’s bid for Warner Bros. is approved. David Ellison just recently took over Paramount in 2025 and has done very little to show that he and his employees can correctly steer the studio in the direction of success.
Goodbye HBO: Paramount has confirmed that they plan to combine Paramount+ and HBO Max into one streaming service. Yes, branding-wise it makes sense to prioritize and upgrade the service named after your company, but HBO is a brand that holds so much power. HBO has been around since 1972, and has always been a promise of good quality television. There’s a reason nobody talks about Paramount+ content. Why kill such an iconic brand by merging the two services together, and therefore miss out on a second monthly subscription fee for your consumers?
Where is this money coming from? Well, first and foremost, Paramount Skydance CEO, David Ellison, is getting a lot of support from his father. Larry Ellison has a $200-billion fortune and connections to President Trump and congressional Republicans. The Trump Administration has been on Paramount’s side this whole time, dismissing the idea of Netflix taking over WBD and blocking the acquisition due to what they considered to be Netflix’s “woke” agenda. On top of that, Ellison is also supported by a $24 billion investment from Gulf sovereign wealth funds, including Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi’s L’imad Holding Company, and the Qatar Investment Authority (QIA). Rush Hour 4 is also happening because Donald Trump wants it to, and part of the film will be shot in the middle east because a good chunk of the financial support is coming from benefactors in Saudi Arabia. How else are they saving money within all this investment and debt? They’re starting to hire “cancelled” talent for cheaper prices. They just hired Brett Ratner to direct Rush Hour 4 and also Max Landis (who has been accused of sexual abuse and hasn’t worked in years because of it). They also plan on saving money by incorporating AI as “a tool for artists,” but “never a replacement” for storytellers.
One of the funniest parts of this merger has been audio from a company-wide meeting at Warner Bros Discovery leaking online, where David Zaslav discussed his thinking that the deal will take at least 6-12 months to close. “The deal may not close. If it doesn’t close, we get $7 billion, and we get back to work.” The axe of Zaslav swings once again! This guy is crazy in the best way. After seeing how hugely successful Warner Bros. ‘s film slate was in 2025, many are hoping this is how things play out.
David Ellison released a statement on the merger. “From the very beginning, our pursuit of Warner Bros. Discovery has been guided by a clear purpose: to honor the legacy of two iconic companies while accelerating our vision of building a next-generation media and entertainment company. By bringing together these world-class studios, our complementary streaming platforms, and the extraordinary talent behind them, we will create even greater value for audiences, partners, and shareholders — and we couldn’t be more excited for what’s ahead.” Most of that seems to contradict their announced plans, but I guess we should try to remain hopeful.
