Paramount Strikes Back With $108 Billion Hostile Offer for Warner Bros Discovery
The fight for control of Warner Bros Discovery escalated dramatically on Monday as Paramount Skydance unveiled a $108.4 billion hostile takeover bid, intensifying the already fierce standoff with Netflix. The surprise move threatens to upend what many believed was a settled deal after Netflix secured board approval last week for a competing $72 billion equity offer.
Paramount’s aggressive all-cash proposal—valued at $30 per share, significantly higher than Netflix’s mix of cash and stock—aims to reclaim momentum in the race to secure the prized Warner Bros film and television empire, including HBO, DC Comics, and the company’s vast library.
The move instantly rewired expectations across Hollywood, Wall Street, and Washington, setting off what could become one of the most high-stakes corporate battles in entertainment history.
Paramount Says Its Offer Is Superior — and Richer by $18 Billion in Cash
Paramount CEO David Ellison argued that the company’s hostile offer delivers $18 billion more in cash than Netflix’s bid, provides a cleaner regulatory path, and would strengthen creative and competitive forces across movie theaters, TV networks, and streaming.
“We believe our offer will create a stronger Hollywood,” Ellison said, claiming the combined studio would better serve artists, audiences, and the industry at large.
Yet analysts quickly pointed out the risks, noting that Paramount could need substantial new debt to finance the acquisition.
Financing Raises Eyebrows: Kushner, Saudis, Qatar Among Backers
Regulatory filings revealed that the bid relies on $40.7 billion in backstop equity provided by the Ellison family and private equity firm RedBird. But the most controversial component comes from outside partners:
- Affinity Partners, Jared Kushner’s private equity firm
- Saudi Arabia’s sovereign wealth fund
- Qatar’s sovereign wealth fund
- L’imad Holding, owned by Abu Dhabi’s government
The political and geopolitical implications of these funding sources are likely to intensify scrutiny from U.S. regulators, lawmakers, and unions already wary of foreign influence in U.S. media.
Netflix’s Position Wobbles as Trump Questions the Deal
Netflix’s $72 billion offer includes one of the largest breakup fees ever proposed—$5.8 billion—and faces a tough antitrust journey. U.S. President Donald Trump added fresh uncertainty by publicly questioning whether the government should approve the deal.
Netflix shares fell 4% on Monday following Paramount’s surprise move, while Paramount climbed 6.8% and Warner Bros Discovery rose 5.5%.
A Bidding War With Political Undertones
Paramount’s leadership maintains that Warner Bros “never meaningfully engaged” with its six previous proposals over 12 weeks. The company argues the sale process unfairly favored Netflix—allegations reinforced by reports that Warner Bros executives privately referred to the Netflix offer as a “slam dunk.”
Paramount CEO David Ellison told CNBC there is an “inherent bias” working against his company in the bidding process.
Some analysts say Ellison may actually be the most logical buyer, given the backing of his father, Oracle co-founder Larry Ellison—one of the world’s wealthiest individuals and an influential ally of the Trump administration.
What the Combined Company Would Look Like
A Paramount–Warner Bros merger would immediately surpass Disney in studio market share and reshape the global entertainment landscape:
- Paramount+ and HBO Max would form a major streaming competitor to Netflix, Amazon Prime Video, and Disney+.
- Television assets like CNN, TNT, and CBS would dramatically expand the company’s cable and news reach.
- The scale of the merger would raise concerns about job losses, reduced competition, and industry consolidation.
Morningstar analysts caution that combined streaming revenue may initially shrink unless Netflix raises prices dramatically or runs separate services—neither scenario considered likely.
Is the Battle Over? Not Even Close
Industry analysts say the fight for Warner Bros is far from resolved.
“Netflix may be in the lead, but Paramount will go to regulators, shareholders and politicians to stop the deal,” said Ross Benes of eMarketer. “This battle could drag on.”
Paramount insists its offer is higher value, more certain, more pro-consumer, and more competitive. Netflix maintains its proposal would create value for talent, shareholders, and audiences, and expressed confidence in the regulatory process.
For now, Hollywood is bracing for a prolonged and increasingly political corporate showdown—one that could determine the future of the American entertainment industry for decades to come.
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