Paramount Skydance has launched a $108.4 billion hostile bid for Warner Bros. Discovery, directly challenging Netflix’s recent deal. The studio offered $30 per share for the entire company, above Netflix’s nearly $28 per share offer for Warner Bros. Discovery’s assets.
Paramount Skydance has made a hostile $108.4 billion bid for Warner Bros. Discovery, challenging Netflix Inc.’s recent deal. Paramount offered $30 per share for the entire company, higher than Netflix’s nearly $28 per share offer for Warner Bros Discovery’s assets.
Netflix had emerged victorious on Friday after a weeks-long battle with Paramount and Comcast, securing a $72 billion equity deal covering Warner Bros Discovery’s TV and film studios, as well as streaming assets. Paramount’s latest offer, valued at $82.7 billion including debt and a $5.8 billion break-up fee from Netflix, is likely to face significant antitrust scrutiny.
Paramount’s strategy and accusations
Paramount submitted multiple proposals since September to create a media powerhouse capable of competing with Netflix and tech giants like Apple. Warner Bros reportedly rejected the offers, prompting Paramount to accuse the studio of abandoning a fair bidding process and predetermining Netflix as the winner.
Analysts say Paramount is well-positioned given CEO David Ellison’s financial support from his father, Oracle co-founder Larry Ellison, and ties to the Trump administration.
US President Donald Trump commented that the Netflix-Warner Bros combination could raise market share concerns, adding he would have a say on the deal. Reports suggest Trump met Netflix co-CEO Ted Sarandos in mid-November, urging Warner Bros. to sell to the highest bidder.
Concerns over Netflix deal
Netflix’s bid has drawn criticism from lawmakers and Hollywood unions over potential job losses and higher consumer costs. Analysts warn that combined streaming revenue could fall unless Netflix raises prices or runs separate platforms.
Sarandos defended the deal, saying it would “drive value for consumers, shareholders and talent” and expressed confidence in regulatory approval.
Netflix’s long-term goals
The streaming giant aims to secure long-term control over premium IP, reduce reliance on external studios, and expand into gaming, live entertainment, and broader consumer offerings. Access to Warner Bros. Discovery’s IP would enhance Netflix’s content credibility, audience reach, and merchandising potential.
Paramount goes directly to shareholders
Paramount is taking its $30 per share cash offer directly to Warner Bros. shareholders, including the Global Networks segment, urging them to reject Netflix’s deal. The company criticized Netflix’s proposal, stating it “exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash.”
Paramount submitted six proposals over 12 weeks. “We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry,” said Paramount Chairman and CEO David Ellison. “We believe they will benefit from the enhanced competition, higher content spend and theatrical release output, and a greater number of movies in theaters as a result of our proposed transaction.”
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