„Our proposal is superior” Paramount announces hostile takeover bid to acquire Warner Bros. over Netflix

Today, Paramount Skydance has made a hostile takeover bid to acquire Warner Bros. Discovery following Netflix’s recent bid to purchase the entertainment company. Regardless of the specific outcome, the entertainment industry will be forever changed. Currently, Warner Bros. has not been officially purchased by either company yet. Warner Bros. shareholders must respond to Paramount Skydance's offer, and depending on their choice, they will need to go through regulatory processes for the transaction to be approved. The impact this has on entertainment will be felt regardless, but the effect specifically on video games might be more noticeable than you think.

Paramount Skydance makes a hostile takeover bid for Warner Bros.

Notably, Paramount Skydance is reportedly seeking to acquire both Warner Bros. and Discovery, which, although still part of the same company, plan to separate before either transaction would theoretically complete. Netflix, on the other hand, is only searching to acquire Warner Bros., not Discovery. According to Variety, David Ellison, CEO of Paramount Skydance, said on a call with analysts and investors, “Our proposal is superior to Netflix in every dimension.” Skydance even has a few major video game releases in the works, so it could turn out to be just the partner Warner Bros. Games needs or vice versa.

All three companies, Warner Bros., Netflix, and Paramount Skydance, have entered the realm of video games. Despite Warner Bros.' troubles over the last few years, it has arguably had the most success. In 2023, the best-selling game was Warner Bros. Games’ Hogwarts Legacy, a property with a sequel already rumored to be in the works. Comparatively, neither Netflix nor Paramount Skydance has a video game project that compares to that, but Skydance New Media’s Marvel 1943: Rise of Hydra is planned for release next year. This acquisition could change the game, no pun intended, for either company if they do want to make further progress in the interactive media landscape.

Related:Marvel 1943: Rise of Hydra officially delayed to early 2026

Warner Bros. doesn’t just have Harry Potter; it also has all of DC, including studios like Rocksteady (Batman: Arkham Knight) and WB Games Montreal (Gotham Knights). WB Games also owns NetherRealm Studios, the team behind Mortal Kombat. There is significant potential among these studios, and they could be substantial additions to either company's growing gaming portfolio.

Of course, there is no guarantee that Netflix or Paramount would want to invest in these studios either. There is always the potential for the studios to be sold or, in the worst-case scenario, shut down. In the case of Paramount Skydance, Variety reports that at least a portion of the $40 billion in capital comes from Saudi Arabia’s sovereign wealth fund, which recently made headlines with its historical potential acquisition of Electronic Arts. Paramount Skydance’s friendly relationship with the current US administration also bodes well for the acquisition's potential passage through the regulatory process. But ultimately, we will have to wait to see how Warner Bros. responds and then how the acquisition process proceeds over the next year or so.

Marvel 1943: Rise of Hydra

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• Overview

• Paramount
• Netflix
• Warner Bros.
• Warner Bros. Games
• Skydance