This week, Paramount CEO David Ellison met with UK Secretary of State for Culture, Media and Sport Lisa Nandy, along with influential European creatives, according to sources. The meetings come as Paramount attempts to block a rival deal between Warner Bros. Discovery and Netflix.
Bloomberg previously reported that senior Paramount executives also held talks with French President Emmanuel Macron and EU regulators as part of a broader European charm offensive. The aim: shore up political and regulatory support as Paramount challenges what it views as a hostile takeover effort involving Netflix.
Any deal involving Warner Bros. Discovery would require approval from the European Union, making Europe a critical battleground.
Cinema at the Center of the Argument
Sources say Ellison repeatedly emphasized the importance of preserving theatrical moviegoing during his meetings. That message is expected to resonate strongly in Europe, particularly in France, which enforces strict theatrical release windows. The country’s stance is so firm that the Cannes Film Festival continues to exclude Netflix-backed films from its main competition.
Concerns about the future of movie theaters are not limited to Europe. Across Hollywood, there is growing anxiety over what a Netflix acquisition of Warner Bros.’ film studio would mean for theatrical releases—an ecosystem already weakened by the Covid pandemic. While Netflix has recently shown signs of softening its resistance to theaters, it remains primarily focused on streaming-first releases.
Regulatory Scrutiny Likely
Competition experts tracking the European Commission told Deadline that while it would be surprising for regulators to outright block Netflix’s proposed $83 billion cash-and-stock transaction, an in-depth investigation is likely. Such a probe could result in conditions attached to any approval.
Possible remedies could include forcing Netflix to continue licensing films and TV shows to third parties, preventing it from hoarding content and gaining excessive control over the market.
In the U.S. and UK, Paramount and regulatory analysts are focusing on streaming market dominance as Netflix’s biggest hurdle—especially if Netflix were to combine its platform with HBO Max. Netflix has countered that argument by claiming the broader video market includes platforms like YouTube, TikTok, and Instagram, not just subscription streamers.
A Growing Corporate and Legal Battle
Warner Bros. Discovery put itself up for sale last fall and agreed to a deal with Netflix in December, turning down a competing $30-per-share all-cash offer from Paramount. Ellison—son of Oracle co-founder Larry Ellison—responded by taking Paramount’s bid directly to WBD shareholders, launching a public relations blitz alongside legal action.
Earlier today, Paramount suffered a setback when a court rejected its request to fast-track a lawsuit seeking additional financial disclosures from Warner Bros. Discovery related to the sale process.
Despite that loss, Paramount is pressing forward. The company has announced plans for a proxy fight and intends to propose an alternative slate of directors at Warner Bros. Discovery’s upcoming annual shareholder meeting.
As the dispute stretches across courtrooms, boardrooms, and now European capitals, the outcome could shape not only the future ownership of a Hollywood giant—but also how movies reach audiences worldwide.
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