Netflix subscribers were hoping to watch Harry Potter on their platform. While it was in exclusive negotiations to acquire the legendary Hollywood studio Warner Bros for $82.7 billion, the video streaming leader did not outbid Paramount Global’s final offer, which ultimately rose to $110 billion.
The merger between Paramount and Warner, still pending approval from competition authorities, would mark a new milestone in the consolidation of entertainment majors. It would bring together two studios behind major franchises: Warner’s “The Lord of the Rings,” “Friends,” or “Matrix”; and Paramount’s “Mission Impossible,” “Top Gun,” or “Transformers.”
With this acquisition, Paramount almost seems to merge with its double, as the business models of both giants are quite similar. While Warner’s 2024 revenue exceeds that of its acquirer ($39 billion versus $29 billion), they both derive most of their revenues and profits from their television segment and focus on developing their respective platforms (HBO Max and Paramount+).
By only considering the entertainment branches to compare with competitors (excluding Disney’s theme parks and hotels representing 37% of its revenue), the future giant could become the undisputed leader in the sector.
But concentration often means a reduction in offerings. Production professionals already fear a decrease in the number of films produced and cuts in teams, as seen after The Walt Disney Company acquired 21st Century Fox in 2019.
French cinema operators would also be affected, as Warner and Paramount films accounted for 12% and 5% of admissions in 2025, respectively.
The streaming landscape is also set to change. David Ellison, 43, head of Paramount-Skydance and future leader of the new entity, has already indicated the intention to merge Paramount+ and HBO Max to better compete with sector giants like Netflix or Amazon Prime.
Lastly, the concentration extends to the news sector, as Paramount would acquire CNN, a pioneer in continuous news in the United States and highly critical of Donald Trump, whose ideas David Ellison shares.
Journalists fear facing a fate similar to CBS employees a year ago: since acquiring Paramount, David Ellison has reshuffled the leadership, including appointing a conservative journalist at the helm.
His father, Larry Ellison, the third richest person globally and founder of Oracle, a massive database management company, was also the 13th largest donor to Republican candidates in 2022, contributing over $31 million.
