Netflix and Paramount have entered a high-stakes fight for control of Warner Bros. Discovery, setting the stage for what could become a long and complex regulatory battle. The outcome is expected to reshape Hollywood, influencing film production, streaming competition and the broader media industry.

Warner Bros. Discovery now sits at the center of a major corporate tug-of-war. Netflix and Skydance-backed Paramount are pursuing rival takeover bids, each offering a different vision for the future of the storied media company.

Competing takeover bids

Warner’s board has urged shareholders to back Netflix’s $72 billion proposal, which focuses on acquiring the company’s studio and streaming operations. The deal would fold Warner’s content library and HBO Max platform into Netflix’s global streaming empire.

At the same time, Paramount is pressing forward with a larger, more aggressive $77.9 billion bid. Unlike Netflix’s offer, Paramount is seeking a full takeover of Warner Bros. Discovery, including its cable networks such as CNN.

The two bids reflect sharply different strategies. Netflix is aiming to strengthen its dominance in streaming, while Paramount is betting on scale across film, television and news.

Regulatory scrutiny looms

Either deal would face intense scrutiny from the U.S. Justice Department. Regulators could attempt to block the transaction outright or demand major structural changes before granting approval.

Challenges are not expected to be limited to the United States. Regulatory authorities in other countries may also review the deals, adding time and uncertainty to the process. Analysts say the approval timeline could stretch beyond a year.

Politics could further complicate matters. U.S. President Donald Trump has made unusually direct comments about the proposed deals and has suggested that he could play a personal role in the approval process. Antitrust experts say such involvement would be unprecedented.

The major players

Warner Bros. Discovery

Founded more than a century ago, Warner Bros. Discovery is one of Hollywood’s “big five” studios. Its portfolio includes blockbuster franchises such as Harry Potter and Superman. The company also owns major networks like CNN and Discovery, DC Studios and the HBO Max streaming platform.

Paramount

Paramount recently completed an $8 billion merger with Skydance and remains one of Hollywood’s most recognizable legacy studios. Its franchises include Top Gun and The Godfather. Beyond film and television, Paramount operates CBS, MTV, Nickelodeon and the Paramount+ streaming service.

Netflix

Netflix is the world’s largest streaming company. According to JustWatch, it controls about 20% of the U.S. on-demand subscription market. HBO Max holds roughly 13%, while Paramount+ accounts for about 7%. Netflix has also expanded its in-house production, delivering global hits such as Squid Game and Stranger Things. Its market capitalization stands near $430 billion, far exceeding Warner’s roughly $70 billion valuation.

Antitrust arguments take shape

Paramount has argued that a Netflix-Warner deal would give Netflix excessive power in the streaming market, particularly if HBO Max were absorbed into its platform. The company says such consolidation could weaken competition.

Netflix disputes that claim. It argues the merger would benefit consumers by expanding content choices and offering more flexible subscription plans.

Both companies are expected to frame their arguments around a broader definition of competition. They are likely to point to platforms such as YouTube as major rivals. Netflix has already cited Nielsen data showing that YouTube accounts for a larger share of total viewing hours than Netflix.

Legal experts say a broader market definition could ease antitrust concerns. However, critics warn that large mergers often lead to higher prices, fewer choices and tighter control over content, especially older films.

Impact on production and news media

A successful Paramount takeover would combine two of Hollywood’s major studios under one roof. Netflix’s bid, meanwhile, raises questions about the future of theatrical releases, despite the company’s promise to honor existing agreements.

Industry groups have also warned that large mergers frequently result in job cuts. While layoffs alone may not trigger antitrust action, regulators could raise concerns if a merged company gains excessive power over wages or production budgets.

Paramount’s bid has also renewed debate over media concentration. A combined ownership of CBS and CNN would likely attract attention during regulatory reviews. Analysts believe, however, that streaming dominance and content control will remain the primary focus.

Trump’s influence and growing uncertainty

President Trump has openly questioned Netflix’s market power while maintaining personal and political connections to figures linked to Paramount’s bid. His comments have added an unusual political dimension to the deal-making process.

Even without political interference, analysts warn that prolonged uncertainty could hurt Warner Bros. Discovery itself. The company has struggled to meet shareholder expectations since its formation, and a drawn-out takeover battle could further distract management.

History shows that mega-mergers in the media industry often involve bold ambitions and fierce competition. Yet many fail to deliver the promised benefits, leaving companies and investors facing unexpected challenges.