Paramount challenges Netflix with a billion-dollar offer to prevent the purchase of Warner.

The global audiovisual industry is facing decisive hours after the unexpected move by Paramount, which submitted a US$108.4 billion offer to block the acquisition of Warner Bros. Discovery by Netflix. The operation has set off alarms in Hollywood due to its impact on competition and the future of theatrical exhibition.

Netflix had already announced a preliminary agreement to acquire Warner for about US$83 billion. With this counteroffer, Paramount reignites a bidding war that is redefining the global entertainment landscape.

A move that shook Hollywood

The first reaction came from exhibition chains. As reported by AFP, industry leaders believe that Netflix's advance on a century-old studio represents an "unprecedented threat" to the continuity of movies in theaters. Michael O’Leary, CEO of Cinema United, was categorical: "Netflix's model doesn't support theatrical exhibition".

In response, Ted Sarandos, CEO of Netflix, assured that they will maintain premieres as they are currently held. The possibility of a single giant controlling Warner Bros., HBO, and HBO Max continues to cause concern.

What Paramount's offer includes

Paramount's proposal includes acquiring CNN, TNT, TBS, and Discovery, in addition to Warner and its content divisions.

"WBD shareholders deserve to evaluate a higher and fully cash offer", Ellison stated in remarks reported by AFP. Meanwhile, the market reacted instantly: WBD shares rose more than 7% and Netflix's fell by 3%.