Paramount X Targeted: Inside Netflix's Warner Brothers Discovery Acquisition Deal

Amidst the heated Warner Brothers Discovery takeover clash with Netflix, Paramount Pictures' official X (formerly Twitter) account was compromised briefly on Tuesday, Variety reports. Its bio read, 'Proud arm of the fascist regime', and after spreading like wildfire on social media, it was swiftly restored to 'The official X account for Paramount Pictures'.

Paramount Skydance earlier this week announced it has rolled out an all cash offer for Warner Brothers Discovery and all its outstanding shares at $30 (£22) per share, following Netflix and Discovery's announcement of their binding agreement Friday. Netflix's proposal, on the other hand, was valued at $27 (£20) per share, in a cash-and-stock hybrid.

BBC published a leaked Paramount memo wherein its CEO David Ellison was quoted, 'We are taking our offer directly to shareholders because they deserve full transparency and the ability to make an informed choice'.

He continues, 'Our $30 per share, all cash proposal is superior to Netflix's offer — $27.75 in total, including $23.25 in cash — across every dimension: higher overall value, greater certainty, a clearer regulatory path, and a future that is pro-Hollywood, pro-consumer, and pro-competition'.

'Proud Arm of the Fascist Regime'

Just a day after Ellison launched an aggressive attempt to impede Netflix's buyout offer for Warner Brothers Discovery, Paramount's official X account, with a following of over 3 million, was hijacked.

Netflix's standing buyout offer at the time was at $72 billion (£53.7 million.) The report further states that a binding agreement was formed Friday, citing HBO and HBO Max to be part of the buyout.

Amid the hacking incident, speculations that it was more of a tactical and deliberate attempt towards powerplay has been making its rounds, particularly to impress US President Donald Trump. Ellis family has ties with Trump through David's father, Oracle CEO Larry Ellison, who disapproved of the Netflix and Paramount Skydance merger deal earlier this month and offered intervention.

Trump though later dismissed taking sides. In an article by Forbes, he is quoted telling reporters, 'None of them are particularly great friends of mine'.

The phrase, seething with provocative political implication, drew the world's attention, instantly raising questions about the studio's security and reputation. Paramount's identity tarnished with such a provocative message raises a concern about its political nuances and its influence given its following not just on social media, but in the entertainment industry.

Paramount has yet to issue a statement confirming the details of the incident.

The Continuing Bidding Heat

While Paramount's bid covers the entirety of Warner Brothers Discovery, Netflix's deal is only for WBD's Hollywood Studios and streaming business.

The incident's timing may be an indication of how high the stakes are in the current hostile bidding war between Paramount and Netflix, where eyes are pinned to the strategies the two giants are willing to employ, and what risks they are willing to take in hopes of landing the Discovery deal. In essence, Paramount may have just staged a self-sabotage to put pressure on shareholders and gain public scrutiny, which equates to attention.

While the perpetrator of the hack remains to be unknown, or if it was a deliberate attempt to send a clear message, the impact of the short-lived banner remains significant, reminding us how a single digital breach can affect even the highest profile names in the industry.

A single, short-lived incident created ripples too big to scale. From its political implications to rumours of security flaws, the reality of the breach remains unclear. One thing is for sure — using digital platforms for such sabotage, whether real or staged, is a bold yet extremely risky move.