Paramount is making its most aggressive case yet to seize Warner Bros. Discovery, unveiling plans to dramatically scale up its theatrical slate as part of its newly launched hostile takeover effort. In a call with press and investors on Monday, company executives pledged to release more than 30 movies in theaters annually and reaffirmed their commitment to "robust, traditional theatrical windows." The message was unmistakable: Paramount intends to embrace the big-screen model at a moment when Netflix, now the frontrunner in the race to acquire key Warner Bros. assets, has been far more skeptical of long theatrical runs.
Netflix recently secured a binding agreement to purchase Warner Bros. and HBO for $82.7 billion, a move that has stirred unease throughout Hollywood. Though Netflix Co-CEO Ted Sarandos insists the company will maintain Warner Bros.' existing theatrical plans, he reiterated that exclusive cinema windows are likely to "evolve" as Netflix continues to prioritize streaming-first releases. While the streamer does debut select titles in theaters, those runs tend to be brief and awards-oriented, fueling industry fears that the company's stewardship of a major studio could further erode the theatrical ecosystem.
Paramount, meanwhile, is leaning into the counter-narrative. On Monday, the company and its partner, Skydance, formally launched an all-cash tender offer to buy all outstanding Warner Bros. Discovery shares at $30 per share, the same terms as those put forward in its Dec. 4 proposal. The deal, which carries an enterprise value of roughly $108.4 billion including debt, seeks to acquire the entire company, from Warner Bros. to its cable networks such as CNN, TNT, and TBS. Netflix's rival bid targets only select WBD assets and proposes spinning off much of the cable portfolio. Unlike Paramount's fully cash offer, Netflix's deal includes both cash and stock valued at $27.75 per share.
David Ellison, chairman and CEO of Paramount, positioned the pursuit as an investment in the long-term health of the industry. "We love the movie and entertainment business," he said. "We believe in its future, and our goal is to protect and strengthen it. Movies are one of America's greatest cultural exports, and we want to build on that tradition." He emphasized growth, not consolidation, saying, "This transaction is about creating more - more opportunities for the industry, more choice for consumers, more value for shareholders and more support for creative talent."
Since Skydance assumed control of Paramount last year, the company has moved quickly to rebuild the studio's theatrical engine. What had been roughly eight annual releases is projected to nearly double to 15 films by 2026, 17 by 2027, and 18 by 2028. Warner Bros., traditionally one of the most prolific studios with 12 to 14 titles per year, is coming off a powerful run that includes "Weapons," "Sinners," and "Superman," placing it at the top of the year's market-share rankings.
As the bidding war intensifies, Paramount is betting that a renewed devotion to cinemas could help sway both industry stakeholders and Warner Bros. Discovery shareholders, and differentiate its vision from Netflix's streaming-centric approach.
