Paramount has upended Hollywood’s expectations by launching a $108.4 billion hostile bid for Warner Bros Discovery, bypassing the company’s board and appealing straight to shareholders. The move directly challenges Netflix’s earlier $82.7 billion agreement to buy Warner’s studios and HBO assets, a deal Warner’s board had already endorsed.
Paramount argues that its $30-per-share, all-cash proposal delivers far more value, faster regulatory clearance, and a clearer future for shareholders. The takeover clash now spans corporate boardrooms, political circles, sovereign wealth financiers, and the highest levels of U.S. leadership—marking a defining moment in the streaming wars.
Key Takeaways: The Paramount vs Netflix Battle for Warner Bros Discovery
- Paramount launches a $108.4 billion hostile takeover bid, outbidding Netflix’s approved deal.
- Netflix’s offer values Warner Bros studios and HBO at around $82.7 billion, excluding cable networks.
- Paramount offers $30 per share in all cash, surpassing Netflix’s $27.75 mix of cash and stock.
- Paramount’s bid includes Saudi, Qatari, Abu Dhabi funds, Jared Kushner’s Affinity Partners, and Ellison family backing.
- Paramount argues its deal faces fewer antitrust hurdles under the Trump administration.
- Netflix remains confident despite the challenge, calling the Paramount counter “expected.”
- Warner Bros must respond to Paramount’s bid within 10 business days.
- The takeover battle could reshape Hollywood, cable television, and the global streaming landscape.
Paramount’s Hostile Bid: A Shockwave Across the Entertainment Industry
Paramount Skydance stunned the global media world by bypassing Warner Bros Discovery’s board and taking its takeover proposal directly to shareholders. The company announced a bold $30-per-share all-cash offer, valuing the entire media giant—including CNN, TNT, HGTV, and all cable networks—at $108.4 billion.
This aggressive move comes days after Warner Bros’ management selected Netflix as the winning bidder in a confidential auction. Netflix had secured a roughly $72 billion equity agreement, valuing the overall transaction at about $82.7 billion including debt, to acquire Warner’s film studios, HBO, and streaming business.
Why Paramount Went Hostile: A Letter, Accusations & a Broken Process
Paramount escalated the situation after expressing deep dissatisfaction with how Warner Bros Discovery handled its sale process.
According to documents and letters reviewed by multiple outlets:
- Paramount submitted multiple offers since September, all rejected without meaningful engagement.
- Paramount accused Warner executives of favoring Netflix from the start.
- In its letter to CEO David Zaslav, Paramount questioned whether the sale process was fair, open, or designed to maximize shareholder value.
- The company referenced a reported meeting between Warner’s international executives and EU officials discussing “merger concerns,” suggesting potential bias against Paramount’s offer.
Feeling stonewalled, Paramount chose to override the board and appeal directly to the shareholders.
Inside the Money: Paramount’s Cash Power vs Netflix’s Stock Mix
The core of Paramount’s pitch is simple:
More cash, more certainty, fewer complications.
| Offer Feature | Paramount | Netflix |
| Value Per Share | $30 (all cash) | $27.75 (cash + Netflix stock) |
| Total Deal Value | $108.4B | ~$82.7B |
| Includes Cable Networks? | Yes (CNN, TNT, Discovery) | No (spun off separately) |
| Regulatory Complexity | Claimed “easier path” | Expected antitrust concerns |
| Backing | Ellison family, RedBird, Apollo, Saudi PIF, Qatar, Abu Dhabi | Netflix internal financing |
Paramount emphasized that it offers $18 billion more cash and a cleaner, “full-company” acquisition rather than Netflix’s carve-out structure.
Who Is Behind Paramount’s Bid: The Ellisons, Gulf Capital & Political Ties
The takeover is heavily powered by:
- Larry Ellison, Oracle co-founder and the world’s second-richest man
- David Ellison, head of Skydance and newly installed Paramount CEO
- RedBird Capital Partners
- Bank of America, Citi, Apollo (providing $54 billion committed debt)
- Saudi Public Investment Fund
- Qatar Investment Authority
- Abu Dhabi’s L’imad Holding Co
- Affinity Partners (Jared Kushner’s investment firm)
Paramount also disclosed that foreign sovereign investors will not receive governance or board rights, a move designed to prevent CFIUS national security objections.
Netflix Responds: Confidence, Calm & Sarandos’ Counter-Messaging
Netflix executives, including co-CEO Ted Sarandos, responded firmly:
- They were not surprised by Paramount’s move.
- They remained “super confident” the Netflix-Warner deal would close.
- Netflix argued it faces fewer regulatory concerns because it is not acquiring cable businesses.
- Sarandos said the merger would be pro-consumer and pro-creator, adding Netflix plans no major job cuts, unlike Paramount’s expected cost-synergies approach.
Netflix maintains its stance that regulators will favor its leaner acquisition model.
Regulatory Storm Clouds: Trump’s Role & Washington Pressure
The takeover battle now intersects with politics at the highest level.
- President Donald Trump said Netflix’s acquisition “could be a problem” due to market share.
- Trump also said he will “be involved” in the approval process.
- Reports revealed that Ted Sarandos recently met with Trump in the Oval Office.
- Trump openly criticized Paramount following a controversial “60 Minutes” interview aired by CBS News, now under the Paramount umbrella.
- Democratic Senator Elizabeth Warren called Netflix’s merger “an anti-monopoly nightmare.”
- Analysts believe a Paramount-Warner union may face different scrutiny for horizontal cable consolidation.
Corporate lawyers now consider this one of the most politically entangled media mergers in years.
Why This Matters: The Future of Streaming, Cable & Hollywood’s Power Map
Whichever company wins will redefine Hollywood’s center of gravity.
If Netflix wins:
- Gains HBO, Warner Bros studios, DC universe, Harry Potter, Looney Tunes.
- Becomes the undisputed streaming superpower with 300M+ subscribers.
- Cable networks become a separate public entity.
If Paramount wins:
- Creates a legacy media giant controlling CBS, CNN, TNT, Nickelodeon, HBO, Warner Bros, DC Comics.
- Could surpass Disney in combined TV reach.
- Faces complex cable and advertising regulatory review.
- Gains scale to challenge Netflix in the streaming arena.
Either outcome marks a historic consolidation of Hollywood’s creative assets, distribution channels, and IP vault.
The Road Ahead: What Happens Next?
- Warner Bros Discovery will review Paramount’s hostile offer.
- They must provide shareholders with a recommendation within 10 business days.
- Paramount’s offer expires January 8, though it could be extended.
- Breakup fees:
- Netflix gets $5.8 billion if Warner walks away.
- Warner pays $2.8 billion for switching deals.
- Netflix gets $5.8 billion if Warner walks away.
Shareholders now hold the power to dictate Hollywood’s next era.
A Defining Moment in Hollywood’s Corporate Revolution
Hollywood has rarely witnessed a takeover battle of this scale, intensity, and geopolitical reach. Paramount’s $108.4 billion hostile bid has not only unsettled Netflix’s nearly finalized deal but has transformed Warner Bros Discovery into the epicenter of a global corporate tug-of-war.
With sovereign wealth funds, political influence, legacy media power, and Silicon Valley ambition converging, the final outcome will reshape film studios, cable networks, streaming platforms, and the cultural fabric of entertainment for decades.
As shareholders weigh competing visions, Hollywood is bracing for a showdown that will rewrite its future.
FAQs on Paramount’s Hostile Bid Against Netflix for Warner Bros Discovery
1. Why did Paramount launch a hostile bid for Warner Bros Discovery?
Paramount launched the hostile bid after its earlier offers were rejected, arguing its $108.4bn all-cash proposal gives shareholders more value and quicker regulatory approval.
2. How does Paramount’s offer compare to Netflix’s deal?
Paramount offers $30 per share in all cash, while Netflix offers $27.75 per share through cash and stock, valuing fewer Warner assets.
3. What makes regulatory approval a major concern in this takeover battle?
Netflix may face tougher antitrust scrutiny due to streaming dominance, while Paramount claims buying all assets avoids complex multi-jurisdiction issues.
4. Who is financing Paramount’s $108bn hostile bid?
Financiers include the Ellison family, RedBird Capital, major banks, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi.
5. What happens next after Paramount’s hostile offer?
Warner Bros Discovery’s board must review and advise shareholders within ten business days, while Paramount’s offer is open until January 8.
