Hollywood’s streaming war could be about to deliver its biggest power shake-up yet. In a major industry development, Paramount Global and Skydance Media have reportedly argued that a $110 billion merger with Warner Bros. Discovery is necessary to compete with streaming giants like Netflix. The explosive claim has sparked fresh talk of consolidation in Hollywood as legacy studios struggle to keep up in the increasingly brutal battle for streaming dominance. 

Warner Bros. Discovery seemingly needs the massive Paramount merger to compete with streaming giants like Amazon, Disney+, and Netflix. The mega-deal will reportedly inject new competitive energy into the entertainment business. Additionally, the deal will bring major entertainment assets like HBO, CNN, CBS, and Paramount Pictures together under one roof. 

Paramount’s chief legal officer, Makan Delrahim, laid out the argument in a letter dated May 7 to California Attorney General Rob Bonta. In this letter, Delrahim highlighted Paramount’s continued commitment and support for movie theatre patrons in California. He further noted that Paramount has sought to convince Bonta of the supposed pro-competitive benefits of a merged Paramount-WBD. 

Furthermore, the deal is headed for possible antitrust scrutiny in the state. However, as per Semafor, Bonta replied by hinting at filing a lawsuit to try to kill the deal. 

“There are red flags everywhere for us,” he said. “We’re looking at things like higher prices, lower wages, fewer jobs, less quality, less choice, less competition, the things that you look at when you’re looking at an antitrust case and a proposed merger,” Bonta stated.   

The companies argue that the mega-deal is essential to survive the increasingly fierce streaming war. 

Why do Paramount and Warner Bros. Discovery believe the $110 billion merger is necessary?

In February 2026, Paramount said the deal with Warner Bros., after the famous breakaway from Netflix, had passed a key federal regulatory hurdle. It would combine Paramount Pictures and Warner Bros., streaming services Paramount+ and HBO Max, and news outlets CNN and CBS. Additionally, Makan Delhrahim wrote in the letter that Paramount and WBD will work together to drive meaningful improvements for movie theatres and their audiences.

He further said that the combined company will release at least 30 films a year. Delhrahim also weighed in on the company’s streaming ambitions. He further said that scale will matter, but Paramount+ and HBO Max do not have the scale to compete effectively with Netflix, Disney+, and Amazon Prime Video.

The proposed mega-merger could change the future of Hollywood entertainment as the streaming wars get more aggressive. Supporters say that the combined power of Paramount Global and Warner Bros. Discovery is needed to compete with streaming giants like Netflix, but critics keep raising red flags about competition, jobs, and executive pay. The blockbuster deal could have massive implications across the entertainment industry as antitrust scrutiny heats up, and investors are already pushing back. 

Do you think Hollywood needs massive mergers like this to compete with streaming giants? Let us know in the comments.

Written by

Bias Sinha

Edited by

Adiba Nizami