Paramount has launched a hostile takeover bid for Warner Bros. Discovery, offering $30 per share—higher than Netflix's recent $27.5 per share deal. The move targets the entire company, including gaming studios like Rocksteady, NetherRealm, and Avalanche. This escalation could reshape the future of Warner Bros. Games amid ongoing industry consolidation.
Bidding War Overview
Warner Bros. Discovery (WBD) is at the center of a heated acquisition battle between streaming giant Netflix and Hollywood studio Paramount. Netflix announced a deal last week to acquire WBD's Streaming & Studios division for $27.5 per share, valued at around $83-87 billion after a planned company split in late 2026. This division includes key assets like HBO, DC Studios, and Warner Bros. Games, home to acclaimed developers such as Rocksteady (Batman: Arkham series), NetherRealm (Mortal Kombat), and Avalanche (Hogwarts Legacy).
Paramount, fresh from its merger with Skydance, rejected by WBD's CEO David Zaslav at an initial $20 per share offer, has now countered aggressively. The new bid stands at $30 per share for the full WBD entity—including the unprofitable Global Networks segment with CNN and TNT Sports—totaling over $108 billion. Paramount claims this 'superior all-cash offer' provides better value and a faster path to completion, bypassing the split.
Gaming Implications
For gamers, the stakes involve the direction of Warner Bros. Games. Netflix's acquisition would integrate these studios into its expanding entertainment ecosystem, potentially boosting cross-media projects like DC-based titles from Rocksteady. Paramount's bid, however, promises 'enhanced competition' and higher content spend, which could mean more theatrical releases and resources for game development. Paramount Chairman David Ellison stated, 'Our offer will create a stronger Hollywood... benefiting the creative community, consumers, and the movie theatre industry.'
Paramount submitted six private proposals over 12 weeks, which WBD allegedly ignored, prompting the public hostile approach. The company expresses confidence in regulatory approval, arguing Netflix's deal risks creating a streaming monopoly that could raise prices and harm creators. Funding for Paramount's bid includes sovereign wealth funds from Saudi Arabia, Qatar, and the UAE ($24 billion), China's Tencent ($1 billion), and investors like Jared Kushner's Affinity Partners.
As details emerge, the outcome remains uncertain, with potential regulatory hurdles under the current U.S. administration. This rivalry underscores the volatile media landscape, where gaming studios are key prizes in billionaire-backed consolidations.