Netflix and Paramount are battling for more than just Warner Bros

The credits were ready to roll. Netflix, the world’s biggest streaming company, had announced on Dec 5 that it was to acquire most of Warner Bros Discovery, one of the biggest names in old-fashioned movie-making, in a deal valued at US$83 billion (S$107.5 billion). But on Dec 8, Paramount – a much smaller rival – pressed pause on the transaction. Sidestepping Warner’s management, it appealed directly to shareholders to accept its

alternative offer of US$108 billion

for the whole company, promising a deal that is “superior to Netflix in every dimension”.

The Looney-Tunes sums could yet grow even higher: Paramount’s owners, the Ellison family, have made clear they are willing to shell out more if necessary; Netflix, whose market value is over US$400 billion, can also afford to bid more if it wants to.