Since entering streaming in 2007, Netflix has consistently challenged traditional media norms. It popularised the practice of releasing entire seasons at once, avoided advertising in marquee originals such as Squid Game, Stranger Things and Bridgerton, and priced subscriptions far below cable television rates in the United States. With 302 million subscribers and revenues of 39 billion dollars in 2024, Netflix stands as the world’s largest independent streaming platform. Yet growth driven purely by subscriptions is showing signs of saturation.
As it looks to expand further, Netflix is increasingly resembling the legacy media companies it once disrupted. The company has introduced advertising supported plans and entered live sports content. Its co chief executive officer Ted Sarandos has also emerged as a central figure in a dramatic merger battle unfolding in Hollywood.
Paramount Skydance, a studio group with 29 billion dollars in revenue in 2024 and known for films like Titanic, Forrest Gump and the Mission Impossible franchise, had made three unsuccessful attempts by October 2025 to acquire Warner Bros Discovery.
The final bid stood at 58 billion dollars. Netflix then entered the race, announcing a deal on December 5 to acquire Warner Bros Discovery for 83 billion dollars. Just days later, Paramount escalated the contest with a hostile bid valued at 108 billion dollars.
Warner Bros Discovery generated more than 39 billion dollars in revenue in 2024 and owns some of the most valuable assets in global entertainment. Its television studios have produced hits such as The Big Bang Theory, while its film divisions are behind franchises including Harry Potter,
The Lord of the Rings and Barbie. For Netflix, the crown jewel may be HBO Max, home to globally successful shows like Game of Thrones and The White Lotus. HBO Max alone has about 128 million subscribers, making it a highly attractive acquisition target.
Analysts point out that Netflix’s offer values Warner’s projected 2026 earnings from streaming and films at about 25 times Ebitda, while Paramount’s bid pushes that multiple even higher. By comparison, Disney trades at roughly 11 times its earnings. This sharp premium has raised questions across the industry, not about the logic of consolidation but about whether the price can be justified.
Past media mergers over the last two decades have often failed to deliver promised synergies, instead eroding brands and shareholder value due to cultural mismatches.
If Netflix succeeds, it is expected to take on nearly 59 billion dollars in debt. Paramount would also need to raise massive capital if its bid prevails. Critics argue that both companies could create new intellectual property and expand organically at far lower cost, even if acquisitions promise faster scale.
At its core, this contest reflects a battle for survival. As traditional television revenues decline and artificial intelligence reshapes content creation and distribution, only companies with massive scale are likely to endure. Streaming and the internet initially broadened opportunities for niche content, but they have also concentrated audience attention around a handful of dominant platforms.
Today, global media power lies with companies that control distribution and discovery, including Google through YouTube, Meta via Facebook and Instagram, Amazon with Prime Video and Apple with its ecosystem.
Success increasingly depends on owning vast libraries of content and sophisticated technology to surface and monetise it across borders and formats.
In this environment, Netflix and Paramount are chasing size to stay competitive. A combined Netflix and Warner Bros Discovery entity would generate an estimated 70 billion dollars in revenue, while a Paramount Warner combination could reach around 79 billion dollars. Either would surpass YouTube’s estimated 61 billion dollars and Disney’s roughly 58 billion dollars from comparable businesses.
The unfolding merger drama underscores a defining moment for the global entertainment industry, where scale, technology and content ownership will decide which players remain standing.
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