Subscribe

12.16.25 GGP News Desk

Share to: X | Facebook | LinkedIN | WhatsApp

“What?” Movie commentator John Campea tells the story of when he heard his father yelling inside a movieplex, before entering a theater to watch a movie. Campea found his father at a concession stand, yelling at a teenage employee. When the father and son recognized each other, the father said, “They want $18!”

Senior Campea was referring to his drink and candy he selected to buy at the concessions. John apologized to the employee,

paid for the snacks, and guided his father to the theater for the then-current feature presentation.

Imagine your favorite movies, like Harry Potter or The Batman, caught in a high-stakes tug-of-war. That’s what’s happening to Warner Bros., one of Hollywood’s biggest studios. On December 5, Netflix offered a massive $82.7 billion to buy Warner Bros.’ film and TV studios, including HBO and its streaming service, Max. This deal would hand Netflix iconic franchises and make it the king of streaming.

But just three days later, Paramount, another major studio, launched a bold $108.4 billion “hostile takeover” bid, trying to snatch Warner Bros. by appealing directly to its shareholders, ignoring the studio’s board.

Why is this happening, and what does it mean for the movies we love? Hollywood is at a crossroads, battling debt, changing audiences, and new tech like AI. Let’s dive into three big points: the current state of Hollywood, why this Warner Bros. buyout matters, and where the movie industry is headed.

The Current State of Hollywood: A Struggling Giant

Hollywood, the heart of global entertainment, is facing tough times. The Big Five, Disney, Warner Bros., Universal, Sony, and Paramount have long ruled the industry, producing blockbusters like Avengers and Jurassic World. But recent years have been rough. The global box office, which generates revenue from theater ticket sales, declined by 10% in 2024 to $30.5 billion, compared to $33.9 billion in 2023. The industry is still recovering from the COVID-19 pandemic, which shuttered theaters in 2020.

The 2023 writers' strikes also delayed films, reportedly costing studios millions of dollars. Many are losing money, with Warner Bros. Discovery (WBD), Warner Bros.' parent company, reporting a $11.3 billion loss in 2024, mainly because of its $50 billion debt from a 2022 merger with Discovery, Inc.

This financial strain has pushed studios to merge or sell to survive.

Since 1989, big mergers have reshaped Hollywood: Sony bought Columbia Pictures, Disney acquired Fox in 2019 for $71.3 billion, Amazon grabbed MGM for $8.5 billion in 2022, and Skydance took over Paramount for $8 billion in 2025. These deals show studios need scale to compete with tech giants like Netflix and Amazon, who have deep pockets and massive streaming platforms. Disney and Universal are profitable, earning $1.4 billion each in 2024, thanks to hits like Wicked and The Super Mario Bros. Movie. But Warner Bros. and Paramount are struggling, with Paramount’s streaming service, Paramount+, still unprofitable despite 71 million subscribers. Sony stays afloat by licensing films to streamers, avoiding the cost of its own platform.

Streaming has changed everything. Platforms like Netflix (300 million subscribers) and Disney+ (164 million) dominate how we watch movies, but their high budgets—$200 million for some blockbusters—and early losses hurt studios. Independent films, once thriving in theaters, now rely on streamers for funding and distribution, often losing their artistic edge to fit mainstream tastes.

Theaters, especially small ones, are closing as streaming shortens theatrical windows (the time films play only in cinemas) from 90 to 30–45 days. Hollywood’s workforce is also hurting, with actors and writers facing job cuts and lower pay due to streaming’s flat-fee model, which slashed residuals by 50% compared to traditional TV, according to the Writers Guild of America.

Why the Warner Bros. Buyout Bid is a Big Deal

The fight over Warner Bros. is a turning point for Hollywood. Warner Bros., known for Harry Potter, The Dark Knight, and Game of Thrones, is a crown jewel with a century-old library and 116.9 million Max subscribers. Its parent, WBD, put itself on the market after a failed 2022 merger with Discovery left it drowning in debt. In September 2025, Paramount tried to buy WBD for $19 per share, but after six rejected offers, WBD signed with Netflix on December 5 for $82.7 billion. Netflix’s deal covers Warner Bros.’ studios, HBO, Max, and franchises like Superman and The Lord of the Rings, aiming to create a streaming giant with over 400 million subscribers and 30–43% of the global streaming market. Netflix promises $2–3 billion in savings and to keep Warner Bros.’ movies in theaters, but critics doubt this, fearing a streaming-only focus.

Paramount didn’t give up. On December 8, it launched a hostile takeover, offering $30 per share—$108.4 billion total—in an all-cash deal for all of WBD, including CNN and TNT Sports, which Netflix excluded. Backed by billionaire Larry Ellison, Jared Kushner, and Middle Eastern funds, Paramount went straight to WBD’s shareholders, accusing the board of ignoring better offers. This bold move, bypassing WBD’s board, sparked a 14% jump in WBD’s stock, showing investors hope for a higher payout. WBD’s board is reviewing the offer and will respond by December 20, 2025, but it leans toward Netflix’s deal.

Why does this matter? Warner Bros. is one of the last major studios, and its sale could reshape Hollywood’s power structure. If Netflix wins, it could dominate streaming, controlling nearly half the market and potentially raising prices or cutting theatrical releases, worrying theater owners and filmmakers like James Cameron, who called Netflix’s promises “sucker bait.” Paramount’s bid aims to keep competition alive, creating a rival to Netflix and Disney, but its political ties—especially to President Trump, who wants CNN sold—raise concerns about editorial influence. Both deals face tough antitrust reviews, with Netflix risking monopoly charges and Paramount facing scrutiny over foreign funding.

The outcome will decide whether Hollywood leans further into tech-driven streaming or preserves a mix of studios and theaters. Prior to creating this article,...

Warner Bros. Discovery is likely to reject Paramount Skydance’s $108.4 billion hostile takeover bid, favoring Netflix’s $82.7 billion offer to acquire its film and TV studios, HBO, and Max streaming service, according to reports on December 16, 2025. The WBD board, expected to announce its decision as early as December 17, considers Paramount’s $30-per-share all-cash offer risky due to its financing, which relies heavily on Larry Ellison’s revocable trust and recently lost support from Jared Kushner’s Affinity Partners. Paramount’s bid, launched on December 8 after WBD rejected six prior offers, aims to seize all of WBD, including CNN and TNT Sports, to rival Netflix and Disney. However, WBD sees Netflix’s deal, signed on December 5, as offering greater value and certainty, despite its lower $27.75-per-share price ($23.25 cash, $4.50 stock). WBD’s stock surged 14% to $28.90, hinting at investor hopes for a bidding war, but analysts warn shareholders not to expect a higher offer soon, as both deals face 12–18 months of antitrust scrutiny that could reshape Hollywood’s future.

The Future of the Movie Industry: Consolidation, Streaming, and AI

Hollywood’s future looks like a high-speed chase toward fewer players, more streaming, and game-changing tech. Consolidation is unstoppable. If Netflix or Paramount buys Warner Bros., only three or four major studios may remain in a decade, down from six in 2000. More mergers are likely—Paramount or Universal could be next—as studios seek scale to match tech giants. Amazon’s 2022 MGM buy and Netflix’s WBD bid show tech companies are reshaping Hollywood, facing less regulatory pushback than media mergers. By 2045, experts predict a “new oligopoly” of three mega-studios, likely including Disney, a tech-backed Universal, and a Netflix-led entity.

Streaming will rule domestic markets. By 2030, it could account for 70% of film revenue, with Netflix, Disney+, and Max targeting 150–200 million subscribers each. Smaller streamers like Paramount+ or Peacock may merge or fade. In the U.S., viewers prefer streaming’s $8–15 monthly cost over $10–20 theater tickets, but this squeezes indie films, forcing them to fit platforms’ mainstream molds. Overseas, theaters will remain vital, especially in China and India, driving 60% of box office revenue. Studios like Disney and Legendary are already co-producing with Asian markets to tap this growth, boosting profits for films like Godzilla x Kong.

AI is Hollywood’s next frontier—and a double-edged sword. By 2030, AI could cut production costs 20–30% through script analysis, visual effects, and editing, helping indie filmmakers with small budgets. Warner Bros. already uses AI to greenlight films, and Netflix is exploring generative AI for content creation. But this threatens jobs. Writers, editors, and visual effects artists face replacement, with the 2023 strike highlighting fears of automation. By 2045, immersive technologies like virtual reality and interactive films could create new indie niches, but only if filmmakers adapt. The metaverse, led by platforms like Apple Vision Pro, may let audiences “enter” movies, generating fresh revenue.

Theaters, however, are in trouble. Global box office may drop to $25 billion by 2030, with 10–15% fewer releases. Independent cinemas could lose 50% of screens by 2045, becoming niche venues for premium experiences. This shift risks Hollywood’s cultural legacy, as communal moviegoing fades.

Use this space to add more details about your site, a customer quote, or to talk about important news.

Overview of the Top Five Hollywood Studios

The “Big Five” Hollywood studios, based on market share and influence in 2023, are Disney (Walt Disney Studios), Warner Bros. (Warner Bros. Discovery), Universal (NBCUniversal), Sony (Sony Pictures Entertainment), and Paramount (Paramount Pictures). These studios dominate theatrical releases, own major intellectual property (IP), and have significant streaming and television operations. Their performance over the last five years and since 2000 reflects shifts in the industry, including the rise of streaming, consolidation, and disruptions like the COVID-19 pandemic and 2023 labor strikes. Below is an analysis addressing performance, profitability, future trends, acquisitions, and the impact of the Warner Bros.-Discovery merger.

1. Walt Disney Studios (Disney)

  • Overview: Disney is the industry leader, owning Walt Disney Pictures, Pixar, Marvel Studios, Lucasfilm, and 20th Century Studios (acquired in 2019). It dominates with franchises like Marvel Cinematic Universe (MCU), Star Wars, Frozen, and Avatar. Disney+ is a major streaming platform.

  • Key IPs: Avengers, Star Wars, Toy Story, The Lion King.

  • Market Position: Consistently leads box office share (e.g., 26% in 2023).

Performance (Last 5 Years, 2020–2024)

  • Box Office: Disney maintained a strong theatrical performance despite pandemic closures. Hits included Spider-Man: No Way Home (2021, $1.92B globally), Avatar: The Way of Water (2022, $2.32B), and Deadpool & Wolverine (2024, $1.34B). Global box office share fluctuated but remained high (e.g., 33% in 2019, 15% in 2020 due to COVID).

  • Streaming: Disney+ launched in 2019, reaching 164 million subscribers by 2024. However, streaming losses peaked at $4B in 2022 before turning profitable in 2024.

  • Profitability: Disney’s studio unit saw profit growth in 2024, driven by hits like Wicked and Mufasa: The Lion King. Overall, Disney’s “content sales/licensing” segment reported improved margins, though specific studio profits are not isolated in public filings.https://www.hollywoodreporter.com/business/business-news/studio-profit-report-lower-costs-1236168895/https://www.movieguide.org/news-articles/after-another-slow-year-which-studios-are-turning-a-profit.html

  • Challenges: The pandemic delayed releases, and the 2023 strikes disrupted production. MCU underperformed in 2023 (The Marvels, $206M globally), and streaming losses strained finances.

Performance (Since 2000)

  • Box Office Dominance: Disney’s acquisitions of Pixar (2006), Marvel (2009), and Lucasfilm (2012) fueled growth. The MCU alone grossed over $30B globally by 2024. Avatar (2009) and Avengers: Endgame (2019) are among the highest-grossing films ever.

  • Strategic Shifts: Disney transitioned from home video (DVDs) to streaming, with Disney+ leveraging its vast library. The 2019 Fox acquisition ($71.3B) added Avatar and X-Men, consolidating its IP portfolio.https://wyomingllcattorney.com/Blog/Mergers-and-Acquisitions-of-Major-Film-Studios

  • Profitability: Disney’s diversified revenue (parks, merchandise, licensing) ensured consistent profits, though theatrical reliance waned post-2000 as streaming grew.

Profitability

2. Warner Bros. (Warner Bros. Discovery)

  • Overview: Warner Bros., part of Warner Bros. Discovery (WBD) since the 2022 WarnerMedia-Discovery merger, owns Warner Bros. Pictures, New Line Cinema, DC Studios, and HBO/Max. It is known for Harry Potter, DC Universe, and The Lord of the Rings.

  • Key IPs: Batman, Superman, Harry Potter, Game of Thrones.

  • Market Position: Second in market share (e.g., 16% in 2023), with a strong theatrical and streaming presence.

Performance (Last 5 Years, 2020–2024)

Performance (Since 2000)

  • Box Office Success: Warner Bros. thrived with Harry Potter (2001–2011, $7.7B total), The Dark Knight trilogy (2005–2012, $2.5B), and The Hobbit (2012–2014, $2.9B). It maintained a top-three market share most years.

  • Mergers and Acquisitions: Warner Bros. was acquired by Time Inc. (1990), merged with AOL (2001), and spun off to AT&T’s WarnerMedia (2018). The 2022 Discovery merger aimed to stabilize finances but added debt.https://variety.com/2025/film/opinion/warner-bros-up-for-sale-where-would-we-be-1236559633/https://en.wikipedia.org/wiki/Warner_Bros._Discovery

  • Profitability: Profitable through the 2000s and 2010s due to theatrical and home video revenue, Warner Bros. faced challenges post-2018 as streaming losses and debt grew.

Profitability

3. Universal Pictures (NBCUniversal)

  • Overview: Owned by Comcast’s NBCUniversal, Universal is known for Jurassic Park, Fast & Furious, and partnerships with Illumination (Despicable Me) and Blumhouse (Halloween). It balances theatrical and streaming (Peacock).

  • Key IPs: Super Mario Bros., Jurassic World, Minions, M3GAN.

  • Market Position: Strong contender, often second or third in market share (e.g., 14% in 2023).

Performance (Last 5 Years, 2020–2024)

Performance (Since 2000)

  • Box Office: Universal’s Jurassic Park sequels, The Mummy (1999–2008), and Illumination’s Despicable Me (2010–present) drove consistent revenue. How to Train Your Dragon and Fast & Furious added billions.

  • Ownership Stability: Acquired by General Electric (2004) and Comcast (2011), Universal avoided major disruptions compared to Warner Bros.

  • Profitability: Strong theatrical and home video profits in the 2000s shifted to mixed results in the 2010s as streaming investments grew. Universal’s diversified portfolio (theme parks, TV) bolstered margins.

Profitability

4. Sony Pictures Entertainment

  • Overview: Owned by Japan’s Sony Group, Sony Pictures includes Columbia Pictures, Sony Pictures Animation, and PlayStation Productions. It focuses on Spider-Man, Ghostbusters, and gaming IPs (The Last of Us).

  • Key IPs: Spider-Man, Venom, Jumanji, Uncharted.

  • Market Position: Fourth in market share (e.g., 11% in 2023), with a “rent-a-player” strategy (licensing to streamers like Netflix).

Performance (Last 5 Years, 2020–2024)

Performance (Since 2000)

  • Box Office: Sony’s Spider-Man trilogy (2002–2007, $2.5B) and reboots (Amazing Spider-Man, MCU Spider-Man) were major successes. Jumanji and Ghostbusters added consistent revenue.

  • Ownership: Sony acquired Columbia Pictures in 1989, maintaining stable ownership without major mergers since 2000.

  • Profitability: Sony’s lean model (fewer releases, high-margin IPs) ensured profitability, though it trailed Disney and Warner Bros. in scale.

Profitability

5. Paramount Pictures (Paramount Global)

  • Overview: Part of Paramount Global, Paramount owns Mission: Impossible, Transformers, and Star Trek. It operates Paramount+ and CBS, balancing theatrical and streaming.

  • Key IPs: Top Gun, Mission: Impossible, PAW Patrol.

  • Market Position: Fifth in market share (e.g., 9% in 2023), struggling with scale compared to peers.

Performance (Last 5 Years, 2020–2024)

Performance (Since 2000)

  • Box Office: Paramount’s Mission: Impossible (1996–present, $4.1B), Transformers (2007–present, $5.3B), and Titanic (1997, $2.2B) drove revenue. However, it lagged behind Disney and Warner Bros. in market share.

  • Ownership: Acquired by Viacom (1994), merged with CBS (2019), and acquired by Skydance Media (2025, $8B), Paramount faced frequent restructuring.

  • Profitability: Profitable in the 2000s via theatrical and DVD sales, Paramount struggled post-2010 as streaming costs and debt grew.

Profitability

Are Studios Profitable?

Where Are Studios Heading in the Next 5–20 Years?

The next 5–20 years will see Hollywood studios navigate consolidation, streaming dominance, technological disruption, and changing consumer habits. Key trends include:

  1. Further Consolidation:

  3. Streaming Dominance:

  5. AI and Technology:

  7. Theatrical Decline:

    • Theaters face an “existential threat” as streaming grows and studios release fewer films (e.g., Disney/Fox dropped from 26 films in 2016 to 14 in 2024). Netflix’s potential control of Warner Bros. could accelerate this shift.https://www.hollywoodreporter.com/movies/movie-news/warner-bros-merger-movie-theaters-1236444439/

    • 5-Year Outlook: Global box office may stabilize at $25–30B, with 10–15% fewer releases. Independent theaters may close.

    • 20-Year Outlook: Theaters may become niche venues for premium experiences, with 50% fewer screens globally.

  9. Global Markets and Genres:

How Many Studios Have Been Bought by Other Companies, Including Tech, in Recent Years?

Since 2000, several major studios have been acquired, with tech companies increasingly involved, reflecting Hollywood’s consolidation:

  1. Disney’s Acquisition of 20th Century Fox (2019):

  3. Amazon’s Acquisition of MGM (2022):

  5. Warner Bros. Discovery Merger (2022):

    • AT&T’s WarnerMedia merged with Discovery, Inc., forming WBD for $43B in equity, absorbing Warner Bros., HBO, and CNN.https://en.wikipedia.org/wiki/Warner_Bros._Discovery

    • Impact: Intended to stabilize Warner Bros. but added debt, leading to its current sale process.

  7. Paramount Global’s Acquisition by Skydance (2025):

  9. Other Notable Acquisitions:

Was the Discovery-Warner Bros. Merger Supposed to Save Warner Bros.?

The 2022 merger between AT&T’s WarnerMedia and Discovery, Inc., forming Warner Bros. Discovery (WBD), was intended to “save” Warner Bros. by creating a financially stable, diversified media company to compete with Disney and Netflix. However, it has largely failed to achieve this goal, leading to WBD’s current sale process.

Intended Goals of the Merger

Why It Failed to Save Warner Bros.

  1. Persistent Debt:

  3. Streaming Struggles:

  5. Box Office Inconsistency:

  7. Leadership Missteps:

  9. Market Pressures:

Outcome: WBD’s Sale Process

Conclusion

The Big Five studios—Disney, Warner Bros., Universal, Sony, and Paramount—remain central to Hollywood but face divergent paths. Disney and Universal are the most profitable, leveraging diversified revenue and strong IPs, while Warner Bros. and Paramount struggle with debt and streaming losses, with Warner Bros. on the brink of acquisition. Sony maintains profitability through a lean, licensing-focused model. Since 2000, Disney, Universal, and Warner Bros. have dominated box office, but streaming has reshaped profitability, with 2024 marking a recovery year post-strikes.https://www.hollywoodreporter.com/business/business-news/studio-profit-report-lower-costs-1236168895/https://www.hollywoodreporter.com/business/business-news/studio-profit-report-nbcu-sony-disney-warner-1235880212/

Future Trends: Over the next 5–20 years, expect further consolidation (potentially 3–4 major studios), streaming dominance, AI-driven production, and a declining theatrical market. International markets and genres like superhero and animated films will drive profits.https://darkskiesfilm.com/which-film-studio-is-the-most-profitable-hollywood-reporter/https://www.fairobserver.com/culture/entertainment/tech-goes-mainstream-shattering-the-old-movie-industry/

Acquisitions: Three studios (Fox, MGM, Paramount) have been acquired since 2000, with Warner Bros. likely next. Tech companies (Amazon, Netflix) are key players, with more acquisitions expected.https://wyomingllcattorney.com/Blog/Mergers-and-Acquisitions-of-Major-Film-Studioshttps://nofilmschool.com/what-movie-studios-are-left-and-who-holds-the-top-ips

Warner Bros.-Discovery Merger: Intended to save Warner Bros., the 2022 merger failed due to debt, streaming challenges, and leadership missteps, leading to WBD’s current sale to Netflix or Paramount.https://en.wikipedia.org/wiki/Warner_Bros._Discoveryhttps://www.hollywoodreporter.com/business/business-news/warner-bros-discovery-q4-2024-earnings-streaming-profit-subscribers-advertising-1236148203/

For ongoing developments, especially on WBD’s sale, monitor sources like Variety, The Hollywood Reporter, or Reuters.https://www.hollywoodreporter.com/business/business-news/studio-profit-report-lower-costs-1236168895/https://about.netflix.com/en/news/netflix-to-acquire-warner-broshttps://www.reuters.com/legal/transactional/paramount-makes-1084-billion-bid-warner-bros-discovery-2025-12-08/

We use cookies to improve your experience and to help us understand how you use our site. Please refer to our cookie notice and privacy policy for more information regarding cookies and other third-party tracking that may be enabled.

Intuit Mailchimp logo
Facebook icon
YouTube icon
Pinterest icon
Instagram icon
LinkedIn icon
Twitter icon