Battle of the streaming giants: The Warner Bros deal is descending into chaos.Image: keystone
December 9, 2025, 10:45 amDec 9, 2025, 10:48
The Netflix deal was actually already through, then the bad news followed on Monday: Paramount is making a counteroffer of $108.4 billion to Warner Bros. shareholders. Netflix announced its planned takeover for almost $83 billion on Friday.
This is a so-called “hostile takeover” because Paramount is not making the offer to the company’s management, but rather directly to the shareholders. The company offers them $30 per share.
Netflix, on the other hand, offered $23.25 in cash and $4.50 in Netflix shares for one WBD share. On December 5th, the two companies announced that they had entered into a binding agreement.
Warner Bros. threatens to pay billions in compensation
Part of the deal with Netflix also included so-called “break-up fees”. These must be paid if the deal does not go through. For Warner Bros., this would mean that the company would have to pay $2.8 billion in compensation to Netflix if the deal falls through.
Donald Trump’s family is directly involved in the deal.Image: keystone
Netflix, on the other hand, has agreed to pay Warner Bros. $5.8 billion in the event of regulatory problems. By purchasing WBD, Netflix would have massively expanded its control over the streaming market. The US Competition Authority and the US Department of Justice are critical of this. Which would also involve Donald Trump’s government.
The connection to Donald Trump
He had already announced at the weekend that the takeover could pose “a problem”. Particularly spicy: Trump’s son-in-law Jared Kushner is involved in the Paramount deal and would benefit from it.
In addition, Trump confidant Larry Ellison is also interested in Warner Bros. going to Paramount. Paramount had installed his son David Ellisons as CEO just a few months ago. The family is also likely to be interested in buying CNN, which is part of Warner Bros.
Netflix, on the other hand, showed no interest in the TV channels. In this deal, CNN and Co. would have been spun off into an independent company under the name Discovery Global.
Netflix was already sending emails to customers
The streaming service Netflix was so sure about it last week that it already sent an email to its customers. The company announced that the acquisition would bring some of the world’s most popular franchises to Netflix.
But the company also wrote: “Nothing is changing today.” The deal still faces some regulatory hurdles, which is why both services will continue to be offered separately. Now Netflix is facing completely different problems. Because if WBD shareholders accept Paramount’s deal, the Netflix deal would be off the table.
Paramount’s offer expires on January 8th, so shareholders have to make a decision by then. (leo)