Paramount Skydance has mounted a $108.4-billion hostile bid for Warner Bros Discovery, attempting to overturn Netflix’s earlier victory in the high-stakes bidding war and form a media giant capable of challenging the streaming leader.
Netflix secured a $72-billion equity deal on Friday for Warner Bros Discovery’s studios and streaming assets, but Paramount’s aggressive counteroffer has kept the contest alive, especially as it targets the company in full, including HBO and DC Comics.
Warner Bros Discovery’s board acknowledged Paramount’s proposal on Monday but maintained its recommendation in favor of Netflix, advising shareholders to “take no action at this time.”
Paramount’s $30-per-share cash bid is backed by Affinity Partners — run by Jared Kushner — along with Middle Eastern sovereign investment funds and the Ellison family. Larry Ellison reportedly phoned President Donald Trump after the Netflix announcement, arguing that the deal would weaken competition.
The studio insists its offer is superior, delivering $18 billion more in cash and facing fewer regulatory obstacles.
CEO David Ellison said, “We believe our offer will create a stronger Hollywood,” adding that the proposal offers “higher headline value, increased certainty in that value, greater regulatory certainty, and a pro-Hollywood, pro-consumer and pro-competition future.”
Paramount’s bid covers Warner Bros Discovery’s cable networks, while Netflix’s offer does not. Still, analysts note that the Paramount-Warner Bros merger would raise antitrust concerns by consolidating two major television operators. Lawmakers have warned the deal could result in “one company controlling almost everything Americans watch on TV.”
The hostile offer reflects a 139% premium over Warner Bros Discovery’s value prior to buyout discussions and surpasses Netflix’s mixed cash-and-stock terms.