Two of Hollywood’s oldest studios could also be consolidating into one. In a stunning twist after a monthslong bidding struggle, Paramount has emerged because the obvious victor within the combat to accumulate Warner Bros.
Netflix, who backed away from the deal Thursday, had hoped to win the film studio and its huge movie library. Paramount needs all of it: Movies, cable networks and news.
Almost 10 years in the past, Hollywood’s huge six grew to become the large 5 when Disney purchased most of twentieth Century Fox. Now the large 5 seems to be prefer it’s destined to turn out to be the large 4, together with Universal and Sony, and the enterprise of Hollywood moviemaking is one once more in a time of profound transition.
Here’s what we all know, what we don’t and a few burning questions.
Simply put, it was not “financially attractive,” the corporate stated.
In December, Netflix had reached a deal to accumulate a few of Warner Bros. Discovery’s property: Their library, film studio and HBO. Almost instantly Paramount, who months earlier had expressed curiosity in buying Warner Bros., initiated a hostile takeover bid for the entire firm, which culminated in a $31 per share provide this week. Netflix, whose earlier provide was $27.75 per share, declined to counter.
“We believe we would have been strong stewards of Warner Bros.′ iconic brands,” Netflix’s co-CEOs Ted Sarandos and Greg Peters stated in a joint assertion. “But this transaction was always a ‘nice to have’ at the right price, not a ‘must have’ at any price.”
Warner had repeatedly backed the deal it struck with Netflix proper up till Thursday night, when its board continued to advocate Netflix even whereas calling Paramount’s bid, valued at about $111 billion together with debt, “superior.”
David Zaslav, the chief government of Warner Bros. Discovery, stated in an announcement that they’re enthusiastic about, “the potential of a combined Paramount Skydance and Warner Bros. Discovery and can’t wait to get started working together telling the stories that move the world.”
Paramount Skydance chairman and CEO David Ellison has stated that he wish to develop their mixed slate to greater than 30 films a yr, conserving Paramount and Warner Bros. as stand-alone operations.
In paperwork filed to the Securities and Exchange Commission final month, Paramount stated, “Our priority is to build a vibrant, healthy business and industry — one that supports Hollywood and creative, benefits consumers, encourages competition, and strengthens the overall job market.”
They’ve additionally stated they’d search for methods to avoid wasting $6 billion by means of job cuts in “duplicative operations.”
Executives at Paramount have argued that merging with Warner will permit it to compete with greater rivals significantly within the streaming area and convey bigger content material libraries for its prospects.
Reminiscent of the hours after the Netflix deal was introduced in December, there isn’t a lot public chatter from these contained in the trade but, however with a number of awards exhibits within the close to future, together with the Actor Awards Sunday, the relative silence is poised to interrupt quickly.
The Paramount news broke as promotion is going on for Warner Bros’. newest film, “The Bride!” Filmmaker Maggie Gyllenhaal informed The Associated Press Friday that she didn’t really feel ready to talk to the deal particularly, however she did provide reward for the studio that supported her movie.
“I was reading tweets about it as I woke up this morning,” Gyllenhaal stated. “I don’t have a position but I do feel really deeply supported by (Warner Bros. Motion Pictures Chairs) Pam (Abdy) and Mike (DeLuca) and I feel that they have been taking a slightly different route than most of the other people around them. They’ve been supporting films that are actually about something while at the same time, I think, encouraging the filmmakers who are making them to reach as big of an audience as possible. That combination is very specific and very precious.”
Warner Bros., among the many most filmmaker pleasant studios working, has had a banner yr with main blockbusters and demanding successes. This yr they collected 30 Oscar nominations due to “Sinners,” “One Battle After Another” and “Weapons.” Paramount movies obtained zero.
In 2025, Warner Bros. films (together with “A Minecraft Movie,” “Superman” and “Sinners”) additionally accounted for 21% of the home field workplace; Paramount’s market share was solely 6%, pushed largely by “Mission: Impossible — The Final Reckoning,” which did not even place within the high 10 (it was eleventh).
In November, Paramount pledged to up its 2026 theatrical output to a minimum of 15 films. Before the Skydance merger, the studio was extra usually releasing eight films a yr.
Though Paramount’s lower than stellar 2025 has been attributed to the earlier regime, Skydance has additionally not had the smoothest run on the field workplace, and its largest hits have centered round Tom Cruise, with “Top Gun: Maverick,” its solely billion-dollar movie, and 6 “Mission: Impossibles.” It’s makes an attempt to restart the “Terminator” franchise have been much less profitable.
While Warner Bros. has succeeded with a mix of unique and franchise movies, Paramount’s slate is decidedly extra franchise heavy with mental property like “Transformers,” “Scream,” “Sonic the Hedgehog,” and “Paw Patrol” of their arsenal.
Cinema United, the commerce group representing film theaters, was vehemently against a Netflix-owned Warner Bros. for worry of what it would imply for film theaters. Exhibition and field workplace has not absolutely recovered for the reason that pandemic — beforehand the annual home field workplace would usually surpass $11 billion. Since 2020, it’s solely exceeded $9 billion as soon as.
But consolidation can be a priority. Although Paramount has a longtime background in theatrical distribution, Cinema United apprehensive about that final result as effectively, which they defined in an announcement to the Senate Judiciary subcommittee listening to in early February.
“If Paramount or another major studio ends up displacing Netflix as the buyer, our concerns are no less serious,” the commerce group wrote. “A combination of Paramount and Warner Bros., for instance, would consolidate as much as 40% of each year’s domestic box office in the hands of a single dominant studio.”
In idea, a assured 30 movies a yr could be a great factor for film theaters, assuming all of them go to theaters and it’s not a mix of theatrical and streaming titles as has occurred with a Disney-owned twentieth Century Studios. But some are skeptical that may pan out.
Hollywood historian and writer Mark Harris wrote on Bluesky that “the idea of a Paramount-WB merger producing 30-40 movies a year is an absurd fiction.” He predicted that first Warner Bros. will turn out to be the “classy” label inside Paramount, “then it will become the specialty or streaming label. Then it will die.”
This stays unclear. It’s doable there might be a bundling scenario as with Disney+ and Hulu.
With Paramount taking up billions in debt and fairness for this deal to undergo, many are questioning what is going to occur to the 2 California studio heaps, particularly in a second the place productions are rarer and rarer in California.
The storied Paramount lot on Melrose in Los Angeles has 30 phases on 65 acres, internet hosting productions from “Sunset Boulevard” to “Forrest Gump.” Warner Bros. Studios in Burbank sits on a 110-acre lot with 31 soundstages and 11 exterior units, the place productions have included “My Fair Lady,” “Gilmore Girls” and “Friends.” Both are historic websites in their very own proper. Warner Bros. additionally has a large studio within the UK, in Leavesden.
That stays to be seen. The U.S. Department of Justice has already initiated opinions, and different nations are anticipated to take action, too.
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