Is Paramount About to Hijack Warner Bros. from Netflix in the Ultimate Hollywood Power Grab?

Imagine this: Two entertainment titans battling over one of Hollywood’s crown jewels—Warner Bros. Discovery—with billions of dollars, iconic franchises like Harry Potter and the DC Universe, and the future of streaming on the line. That’s exactly what’s exploding right now in the industry.
On January 12, 2026, Paramount Skydance—led by CEO David Ellison—dropped a bombshell. They filed a lawsuit against Warner Bros. Discovery (WBD), its CEO David Zaslav, and key board members, demanding full transparency on the financial details behind WBD’s massive $82.7 billion deal with Netflix. But that’s not all. Paramount is also gearing up for a full-on proxy fight, planning to nominate its own slate of directors for WBD’s board at the upcoming annual meeting. The goal? Convince shareholders that their $108.7 billion all-cash offer is the superior path forward.
So, why the drama? Paramount argues their straightforward $30 per share cash bid for the entire company—including studios, streaming, and cable networks like CNN and TNT—beats Netflix’s $27.75 per share cash-and-stock proposal, which only targets the studios, HBO, Max, and games business after spinning off the linear TV assets into “Discovery Global.”
Paramount claims their deal avoids messy regulatory hurdles, delivers pure cash faster, and dismisses the value of those cable networks as “virtually worthless,” pointing to recent weak performances in similar spinoffs. In a scorching letter to WBD shareholders, they accused the board of dodging real engagement and hiding key analyses that could sway votes.
The lawsuit, filed in Delaware Chancery Court, seeks expedited disclosure so investors can decide whether to tender shares to Paramount before the January 21 deadline (which can be extended). Time is ticking—Paramount warns that tender numbers will dictate next steps.
WBD fired back hard, labeling the suit “meritless” and insisting Paramount hasn’t raised its price despite repeated rejections. They highlight a $2.8 billion breakup fee owed to Netflix if the deal collapses (part of up to $4.7 billion in total costs), plus the risks of Paramount’s heavily debt-financed structure—calling it potentially the largest leveraged buyout ever.
Analysts are skeptical about the lawsuit dragging things out in court. One expert put it bluntly: If Paramount truly wants Warner Bros., they should just raise the bid—because “money talks.” Paramount’s latest offer includes $40 billion in equity personally guaranteed by Larry Ellison (David’s billionaire father and Oracle co-founder) plus $54 billion in debt, but no hike in the per-share price yet.
Market reactions? WBD shares dipped about 1.8% amid the chaos, while Netflix and Paramount saw slight upticks.
This isn’t just corporate chess—it’s a clash that could reshape entertainment. A Paramount win might create a mega-studio rivaling Disney, blending legacies from CBS, Paramount, and Warner. A Netflix victory? It supercharges the streaming leader with HBO, DC, and more, while shedding cable baggage.
Will shareholders side with Paramount’s cash promise and force a showdown? Or will WBD’s board hold firm, sticking with Netflix’s “superior” path? With a proxy battle looming and antitrust scrutiny ahead, the stakes couldn’t be higher.
Hollywood’s biggest blockbuster might not be on screens—it’s playing out in boardrooms and courtrooms right now. Who do you think wins this epic showdown?