The Netflix Paramount Media Money Muddle
It was quite comedic to watch the reaction to the news at the end of last week that Netflix had won the bidding to take over Warner Brothers. There was indeed much celebrating. There as also quite a bit of consternation. The celebration was primarily because there is an abundant school of thought that no one wanted Paramount, now essentially another tentacle of the Trump administration, to win.
I didn’t bite on the news celebrations or the consternation being the final chapter then. Of course it wasn’t. The Netflix bid parlayed out to $72 billion. On Monday, Paramount Skydance launched a hostile all cash takeover bid of $77.9 billion.
There’s only a roughly $5-6 billion difference between the two bids, but the Paramount bid seeks to swallow up the pieces of Warner Brothers/Discovery that Netflix apparently wasn’t interested in, including media properties such as CNN, TNT Sports, and Discovery. Netflix’s bid was for Warner’s Studio and HBO’s streaming business only. Note that Warner Brothers had previously announced that it planned to split up the combined businesses in just that vein.
So, what does it all mean?
First, it means a lot of lawyers and lobbyists are going to make a lot of money. There are political, marketplace, and money pieces moving around the board in what looks to be quite a saga that I imagine Hulu will end up making a series about within a couple of years.
Netflix is after the content. And the control. Ben Thompson has an excellent run down on that, and why Netflix’s delivery system makes it make sense. Netflix has created quite a war chest for its bid (which is both cash and stock), by building a relatively slick distribution system to deliver its already abundant content, plus whatever it continues acquiring. (How many TV remotes are there without a Netflix button these days?)
Paramount Skydance CEO David Ellison’s all cash bid includes quite a few players including his pop, Larry Ellison, both of whom are Trump supporters, as well as outlays from sovereign wealth funds of Saudi Arabia, Abu Dhabi, Qatar, and also Jared Kushner’s Affinity Partners. Without those partners Paramount, valued at around $15 billion, would have a hard time competing with Netflix’s roughly $400 billion war chest. (The Wall Street Journal has a decent rundown on more of the money specifics.)
Second, it means what was already a muddle the way most of these kind of things are, will get muddled up even more due to the politics of the moment. I’ll disagree with Ben Thompson’s analysis that points out that the President doesn’t have final say on this. That may have indeed been true in a past we’re no longer living in. Those old rules no longer apply. As we’ve been learning everyday since January 20, 2025.
Third, Hollywood also has its concerns. The traditional studio power structure is not enamored of Netflix and its heretofore disdain for theatrical releases, which also brings movie theatre owners into play. I’m not sure if the Netflix bid means the death of Hollywood as some claim, but it certainly would shift the pieces, the game board, and the power structure as what began as a tech company could end up controlling much of what we see on our smaller silver screens.
Big money is at stake obviously. But when big egos get involved the costs for everyone increase. Including those flipping through content consumption choices with their remotes.
Stay tuned. I’m guessing that Hulu series will be quite a watch when all is said and done.
You can also find more of my writings on a variety of topics on Medium at this link, including in the publications Ellemeno and Rome. I can also be found on social media under my name as above.
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