Everything is messy. Honestly, that’s the only way to describe the media industry business news today. If you thought the streaming wars were over because everyone finally added an ad tier, you haven't been paying attention to the Delaware Chancery Court or the latest hostile takeover bids.
The biggest story right now? It's a high-stakes three-way tug-of-war for Warner Bros. Discovery (WBD). We aren't just talking about a simple merger. We’re talking about a legal and financial cage match between Netflix and the David Ellison-led Paramount Skydance Corporation.
The Netflix-WBD Deal Faces a Massive Cash Pivot
Netflix is currently the frontrunner to swallow the crown jewels of Warner Bros.—the film studios, the HBO library, and the Max platform. But the math just got ugly. Originally, Netflix put up an $82.7 billion offer that was a mix of cash and stock.
Then the market happened.
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Since the deal was first whispered about in late 2025, Netflix’s stock has taken a beating, losing roughly 25% of its value. This turned a "guaranteed" payday for WBD shareholders into a shrinking violet. To stop the bleeding and stave off rivals, reports from January 17, 2026, indicate Netflix is prepping a revised, all-cash offer.
They want to simplify things. Cash is king when your stock price is acting like a roller coaster.
Paramount Skydance Isn't Going Away
David Ellison is playing hardball. He isn't just offering a different deal; he’s suing WBD to prove his is better. On January 12, Paramount Skydance filed a lawsuit against WBD and CEO David Zaslav.
The goal?
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Transparency. Ellison claims his $108.4 billion all-cash offer for the entire company—including the "linear" assets like CNN and TNT—is financially superior to the Netflix "carve-out" plan. Under the Netflix deal, WBD would spin off its traditional TV channels into a new entity called Discovery Global. Ellison’s team basically called that spin-off "worthless" in their court filings.
- The Ellison Edge: Larry Ellison (the Oracle co-founder and David’s dad) has personally backstopped the bid with a $40.4 billion guarantee.
- The Court’s Stance: A Delaware judge just rejected a motion to expedite this trial. This means the drama is going to drag on, leaving WBD in a weird state of limbo while its competitors sharpen their knives.
Advertising is the New Content
While the big titans fight over ownership, the actual money is moving toward ads. PwC’s latest outlook projects global advertising revenue will hit $1 trillion this year.
That’s a staggering number.
Streaming services, which used to brag about being "commercial-free," are now leaning into ad-based models to survive. By the end of 2026, advertising is expected to account for 28% of all global streaming revenue. Even OpenAI is getting in on the action, confirming they are testing ads within ChatGPT to support a new $8-per-month "Go" tier.
Disney is also pivoting. They’re launching vertical, TikTok-style video content on Disney+ later this year to capture the short-form attention span that Gen Z has mastered.
Why the "Linear" Business is the Elephant in the Room
Nobody seems to know what to do with "old" TV. If the Netflix deal goes through, Discovery Global becomes a standalone company filled with cable networks like Food Network and HGTV.
Is that a viable business or a sinking ship?
The markets are skeptical. Traditional broadcasters are expected to see stagnant or declining content investment this year, according to Ampere Analysis. Meanwhile, streamers are projected to spend $101 billion on original content in 2026 alone.
The gap between the "haves" (global streamers with scale) and the "have-nots" (local broadcasters and cable bundles) has never been wider.
Practical Steps for Media Investors and Professionals
If you’re trying to navigate this landscape, don't just look at the headlines. Look at the debt. The Paramount Skydance bid involves taking on $54 billion in new debt, which has credit agencies like S&P Global sweating.
- Watch the Delaware Court: The outcome of the Paramount Skydance lawsuit will determine if WBD shareholders get to vote on a better deal or if the Netflix acquisition is a lock.
- Follow the Ad-Tech: Companies like Disney and Netflix aren't just "media" companies anymore; they are becoming ad-tech giants. Their ability to target users is where the real margin lies.
- Keep an Eye on Sony: Netflix just signed a massive global "Pay-1" deal with Sony Pictures. This ensures that even if Netflix doesn't own a studio, they’ll have the biggest movies—like Spider-Man and Zelda—locked down for years.
The industry is consolidating because it has to. Scale is the only shield against a market that demands both billion-dollar blockbusters and profitable spreadsheets.
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Next Steps for You: Track the WBD share price over the next 48 hours. If it stays below the $27.75 Netflix offer price, expect Ellison to turn up the heat on his hostile bid. Also, keep an eye on the upcoming "Discovery Global" Upfront presentation scheduled for May—it’ll be the first real look at how a "linear-only" company tries to sell itself to advertisers in a digital world.