The business of Hollywood movie making is once again in a time of profound transition.
Here's what we know, what we don't and some burning questions.
Why did Netflix bow out of the fight?
Simply put, it was no longer "financially attractive," the company saidÂ
Warner had repeatedly backed the deal it struck with Netflix right up until Thursday evening, when its board continued to recommend Netflix even while calling Paramount's bid, valued at about $US111 billion including debt, "superior"
David Zaslav, the chief executive of Warner Bros. Discovery, said in a statement that they're excited about, "the potential of a combined Paramount Skydance and Warner Bros. Discovery and can't wait to get started working together telling the stories that move the world"
What are Paramount's plans with Warner Bros.?
Paramount Skydance chairman and CEO David Ellison has said that he would like to grow their combined slate to more than 30 movies a year, keeping Paramount and Warner Bros. as stand-alone operations
Executives at Paramount have argued that merging with Warner will allow it to compete with bigger rivals particularly in the streaming space and bring larger content libraries for its customers
How is Hollywood responding?
Reminiscent of the hours after the Netflix deal was announced in December, there isn't much public chatter from those inside the industry yet
The current state of Paramount movies v Warner Bros.
Warner Bros., among the most filmmaker friendly studios operating, has had a banner year with major blockbusters and critical successes. This year they collected 30 Oscar nominations thanks to Sinners, One Battle After Another and Weapons. Paramount films received zero
In 2025, Warner Bros. movies also accounted for 21 per cent of the US box office; Paramount's market share was only six per cent
In November, Paramount pledged to up its 2026 theatrical output to at least 15 movies. Before the Skydance merger, the studio was more regularly releasing eight movies a year
While Warner Bros. has succeeded with a combination of original and franchise films, Paramount's slate is decidedly more franchise heavy with intellectual property like Transformers, Scream, Sonic the Hedgehog, and Paw Patrol in their arsenal.
Is this a better outcome for movie cinemas?
Cinema United, the trade organisation representing movie cinemas, was vehemently opposed to a Netflix-owned Warner Bros. for fear of what it might mean for movie theatres
Consolidation is also a concern. Although Paramount has an established background in theatrical distribution, Cinema United worried about that outcome as well, which they explained in a statement to the Senate Judiciary subcommittee hearing in early February
"If Paramount or another major studio ends up displacing Netflix as the buyer, our concerns are no less serious," the trade organisation wrote. "A combination of Paramount and Warner Bros., for instance, would consolidate as much as 40 per cent of each year's domestic box office in the hands of a single dominant studio"
Will HBO Max and Paramount+ combine?
This remains unclear. It's possible there will be a bundling situation as with Disney+ and Hulu
What will happen to the studio lots?
With Paramount taking on billions in debt and equity for this deal to go through, many are wondering what will happen to the two California studio lots, especially in a moment where productions are rarer and rarer in California
The storied Paramount lot on Melrose in Los Angeles has 30 stages on 26ha, hosting productions from Sunset Boulevard to Forrest Gump
Warner Bros. Studios in Burbank sits on a 44ha lot with 31 sound stages and 11 exterior sets, where productions have included My Fair Lady, Gilmore Girls and Friends. Both are historic sites in their own right. Warner Bros. also has a massive studio in the UK, in Leavesden
Will regulators approve the deal?
That remains to be seen. The US Department of Justice has already initiated reviews, and other countries are expected to do so, too
