Paramount sues Warner Bros. over $82,000,000,000 Netflix deal
The streaming wars are only just heating up
The streaming wars are burning hotter than ever in 2026, and while Wall-E's dystopian future, where the whole world is controlled by just one company, once seemed like a pipe dream, it’s not so fanciful.
Only four companies in the world have ever crossed the lucrative $4 trillion market cap, with Alphabet, Apple, Microsoft, and Nvidia having the honor. Still, others are gaining amid fears that a select few will hold a monopoly over various industries.
The end of 2025 involved plenty of rumors about Warner Bros. Discovery putting itself up for sale, and when it was made official, a number of interested parties swooped in. Although Netflix originally suggested it wasn't interested, it eventually put an impressive deal on the table, giving an equity value of $72 billion and a total enterprise value of $82.7 billion.
Advert
This included a tempting $5.4 kill fee if things didn't go through, and despite Paramount Skydance seemingly offering more, Netflix looked like it closed the deal.
This hasn't sat well with Paramount Skydance, which has suggested a revised offer but is still locked out in the cold. President Donald Trump has already shared his concerns about Netflix scooping up WBD, while others have claimed there's potential political interference because Trump ally Larry Ellison is linked to the Paramount bid.
Even Leonardo DiCaprio has warned against Netflix's looming acquisition, although his fears involve what the streaming service would do to the traditional theater experience.
Reuters reports Paramount Skydance is suing Warner Bros. Discovery, as David Ellison's company maintains its $108.7 billion all-cash bid is better than Netflix's cash-and-stock offer.
WBD rejected Paramount's revised offer after it said shareholders voted in favor of Netflix. Paramount has now penned a letter to its own shareholders, saying it wants an amendment to Warner Bros. Discovery's bylaws, requiring shareholder approval for any potential annexing of its cable TV business.
Paramount says that its $30 per share deal for everything WBD outranks Netflix's $27.75 per share for the studio and streaming assets – leaving cable TV on the table.
Filed in the Delaware Court of Chancery, Paramount's lawsuit wants to force Warner Bros. Discovery to disclose the financial reasoning for why the board is backing Netflix.
Still, after Paramount Skydance suggested the cable arm was virtually worthless, it's yet to raise its offer further from $108.7 billion.
Craig Huber, analyst at Huber Research Partners, said: "I don’t think the lawsuit matters much. It would take ages to get through the court system if they full-on go that route. If they want Warner Bros bad enough, raise the bid. Money talks."
In defense, Warner Bros. reiterates that it will owe Netflix a $2.8 billion termination fee, which serves as part of the extra costs that would total $4.7 billion to walk away.
Paramount Skydance wrote to investors, saying: "WBD has provided increasingly novel reasons for avoiding a transaction with Paramount, but what it has never said, because it cannot, is that the Netflix transaction is financially superior to our actual offer.
"Unless the WBD board of directors decides to exercise its right to engage with us under the Netflix merger agreement, this will likely come down to your vote at a shareholder meeting."
Warner Bros. Discovery has responded, branding Paramount's lawsuit as 'meritless' and complaining that the multinational mass media and entertainment conglomerate is yet to "raise the price or address the numerous and obvious deficiencies of its offer."