8 December 2025
If you are covering Paramount Skydance’s rival bid for Warner Bros Discovery, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
“Paramount’s blockbuster bid for Warner Brothers underscores that we are just at the beginning of this saga rather than at the end point. Following Netflix’s surprise bid for the entertainment giant at the end of last week, a rival bid from Paramount was expected and as expected they have looked to push Netflix to the sidelines with a significantly higher value.
“Paramount ultimately needs this deal more than Netflix, and that may be a driving factor in the valuation it is putting on Warner Bros. Paramount remains a legacy entertainment provider that lacks the scale required for the modern age. Consolidating amongst peers is the sensible play and gives them the best opportunity to rival Disney for that number two slot behind Netflix.
“For Netflix, meanwhile, this sort of asset remains a nice to have rather than a necessity. There is an element of defensiveness in that it won’t want a player like Paramount to significantly increase its size and reach, at the same time as taking ownership of a prized asset like HBO. Getting this deal over the line, for Netflix, would give it more engagement and ultimately more pricing power. However, it has historically been a builder, not a buyer, and as such its next move will be watched closely.
“The ball is in Netflix’s court and it will likely want to show some discipline. Paramount will hope that it has blown the streaming giant out of the water with this bid, but even if it has, any review by the DoJ is likely to result in a long process.”
