Netflix and Paramount are fighting over Warner Bros. Discovery

Warner Bros. Discovery is in the middle of a Hollywood tug-of-war between Netflix and Paramount. And chances are it’ll be a long, bumpy regulatory road ahead for either buyer. Warner’s board on Wednesday urged shareholders to back the deal it struck with Netflix to sell its studio and streaming business for $72 billion. Meanwhile, Skydance-owned Paramount is moving forward with its hostile $77.9 billion bid for a full takeover of the company, including networks like CNN. In both scenarios, a merger would likely trigger a review by the U.S. Justice Department, which could sue to block the transaction or request changes. But other countries and entities could challenge either acquisition, too. Politics are also expected to come into play under U.S. President Donald Trump, who has made unprecedented suggestions about his personal involvement on whether a deal will go through. The process could drag on for more than a year, if not longer. But regardless of who wins, new ownership of Warner properties would drastically reshape the industry - impacting movie-making, streaming platforms and the broader media landscape. Here’s what we know. The buyout target - Warner Bros. Discovery - is a 102-year-old Hollywood giant. It is one of the “big five” studios, producing titles ranging from “Harry Potter” to “Superman.” And its cable operations include top networks like CNN and Discovery. Warner also owns DC Studios and HBO Max. Paramount, which closed its own $8 billion merger with Skydance just months ago, is also one of Hollywood’s remaining legacy studios - with a blockbuster lineup including “Top Gun” and “The Godfather.” Beyond traditional film and TV production, it owns networks like CBS, MTV and Nickelodeon, as well as the Paramount+ streaming service. For Netflix, streaming is its bread and butter, accounting for 20% of the U.S. market for on-demand subscriptions, according to data from streaming guide JustWatch. That compares to 13% for HBO Max and 7% for Paramount+. But Netflix has also built up its own production arm, rolling out popular titles like “Squid Game” and “Stranger Things.” Netflix is the biggest of the three companies, with a market capitalisation of around $430 billion as of mid-December. Warner Bros. Discovery is about $70 billion, while Paramount Skydance trails at closer to $14 billion. Paramount has already pointed to Netflix’s streaming dominance, arguing that bringing the platform under the same roof as HBO Max would squash competition and give it “overwhelming” market share. But Netflix has maintained its merger will give consumers more choice, allowing it to offer more plans and titles for customers to choose from Warner’s catalog. Antitrust experts expect Paramount and Netflix to try to convince regulators that they’re not just up against more traditional rival subscriptions, but broader video libraries across the internet. YouTube is at the top of the list and Netflix is already laying the groundwork to show Google’s streaming platform dominance in terms of viewing hours, which, according to media analytics firm Nielsen, accounted for nearly 13% of viewership this fall compared with...

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