Decisive Battle for Warner Bros. Discovery: Paramount Raises the Stakes in Fight Against Netflix

The battle for control over the assets of Warner Bros. Discovery, one of the world's most important film studios and broadcasters, has reached a critical point. According to the terms set by the board of WBD, Monday, February 23, until 23:59 Eastern Time (ET) is the final deadline for Paramount Skydance to submit its "best and final" offer. Analysts expect the consortium led by David Ellison to propose $32 per share, a significant increase from the previous $30. This move aims to convince shareholders to reject the competing proposal from Netflix, which amounts to $82.7 billion. In the background of this business battle, a dispute over the future of the film industry is unfolding. James Cameron, the director of hits like "Avatar," sent a letter to Senator Mike Lee, warning of the "catastrophic consequences" of Netflix acquiring WBD for traditional theatrical distribution. Ted Sarandos, Netflix's co-CEO, sharply responded to these accusations in an interview with the BBC. He stated that Netflix's acquisition is an opportunity for growth, while Paramount's offer would lead to the industry "shrinking." Actor Mark Ruffalo also joined the debate, publicly asking Cameron if he was equally concerned about market monopolization in the event of Paramount's victory. The US media industry has been undergoing a process of intense consolidation for several years. Mergers such as Disney's combination with Fox in 2019 set the trend for creating massive content libraries needed to compete in the streaming platform market. The situation is further complicated by the intervention of the U.S. Department of Justice. The agency has officially launched an investigation to check whether a Netflix-Warner merger would violate antitrust laws by creating a dominant position in the streaming and content distribution market. While Netflix faces political and regulatory pressure, Warner Bros. Discovery's stock price is bucking the market downturn, reflecting investor optimism about a swift resolution of the bidding war. „We're buying a movie studio and a distribution entity that we don't currently have - we'll be adding to the market.” — Ted Sarandos It is worth noting that the WBD board has so far recommended a merger with Netflix. However, the seven-day negotiation window with Paramount, which is now closing, opens the door to a sudden change of decision if Ellison's offer proves more lucrative. This decision will radically change the balance of power in the global media world. The Sherman Act, passed in 1890, remains the foundation of U.S. antitrust law, allowing the government to block transactions that could drastically limit competition in a given industry.