Warner Bros. Discovery (WBD) remains is at the center of a high-stakes corporate battle. The company, formed in 2022 from the merger of Discovery and WarnerMedia, has faced ongoing challenges, including massive debt, declining linear TV revenue, and strategic shifts. This culminated in a planned split into two entities — a streaming/studios-focused "Warner Bros." and a networks-focused "Discovery Global" — but unsolicited bids turned it into an auction.
The current fight pits a friendly deal with Netflix (acquiring the studios, HBO, and streaming assets) against a hostile takeover bid from Paramount Skydance (backed by Larry Ellison), aiming to buy the entire company.
Here's a chronological timeline of the major developments:
- December 2024 – Early 2025 — WBD restructures into two divisions (Streaming & Studios, Global Linear Networks) to enable flexibility and future options.
- June 9, 2025 — WBD officially announces plans to split into two independent public companies by mid-2026: "Warner Bros." (studios, HBO, Max) led by CEO David Zaslav, and "Discovery Global" (cable networks like CNN, TNT) led by CFO Gunnar Wiedenfels. The move aims to separate high-growth streaming from declining linear TV.
- July 2025 — WBD names the post-split entities and confirms leadership.
- Late 2025 (September–November) — WBD opens a strategic review after unsolicited interest. Bidders include Netflix, Paramount Skydance, and Comcast. Paramount (led by David Ellison) makes multiple private offers (starting at $19/share), which WBD rejects in favor of its split plan.
- December 5, 2025 — WBD announces a definitive agreement to sell its Streaming & Studios business (Warner Bros. studios, HBO, Max) to Netflix for $72 billion equity value ($82.7 billion enterprise value). The deal requires spinning off the networks into Discovery Global by Q3 2026. Netflix gains control of HBO and major franchises (e.g., DC, Harry Potter).
- December 8, 2025 — Paramount Skydance launches a hostile all-cash bid for the entire WBD at $30/share (~$108.4 billion enterprise value), refusing to accept the Netflix deal. David Ellison claims WBD favored Netflix and ignored Paramount's offers.
- December 10–17, 2025 — Bidding intensifies. Netflix raises its offer slightly to $27.75/share. Paramount boosts its bid to $30/share, dropping Chinese investor Tencent but retaining Middle Eastern funds. WBD's board rejects Paramount's offer, calling it riskier and less financed.
- December 22, 2025 — Larry Ellison personally guarantees $40.4 billion in equity for Paramount's bid, addressing financing concerns. Paramount amends its offer and urges shareholders to tender by January 21, 2026.
- December 23, 2025 — WBD board blasts Paramount's bid as "opaque" and urges shareholders to reject it. Netflix executives defend their deal as a "win" for growth.
This saga underscores the industry's consolidation pressures, driven by streaming dominance and declining cable TV.