Paramount Launches $108 Billion Hostile Bid Against Netflix for Warner Bros Discovery
Paramount Skydance has intensified Hollywood’s biggest corporate standoff by launching a hostile $108.4 billion bid for Warner Bros Discovery, aiming to outmanoeuvre Netflix’s earlier offer and establish a global media giant capable of rivaling the streaming leader.
Paramount Ups the Stakes Against Netflix
The new bid, announced on Monday, arrives just days after Netflix secured a $72 billion equity deal for Warner Bros Discovery’s entertainment assets, including its film and TV studios, HBO, and streaming platforms. Paramount’s counteroffer, however, significantly raises the stakes, pledging $18 billion more in cash and a broader acquisition scope covering Warner Bros Discovery’s cable networks.
Warner Bros Discovery’s board confirmed it would review Paramount’s proposal but maintained its current recommendation in favour of Netflix, advising shareholders to “take no action at this time.”
Financing Backed by High-Profile Investors
Paramount’s $30-per-share offer is financed by a mix of influential backers, including Jared Kushner’s investment firm Affinity Partners, several Middle Eastern sovereign wealth funds, and L’imad Holding Co, owned by the Abu Dhabi government. The Ellison family, led by tech billionaire Larry Ellison, has committed substantial equity support, with private equity firm RedBird Capital also contributing to a $40.7 billion backstop.
Ellison reportedly contacted U.S. President Donald Trump following Netflix’s deal announcement, expressing concern about reduced market competition. Paramount argues that its acquisition plan offers “greater regulatory certainty” and aligns better with Hollywood’s creative and consumer interests.
Political and Regulatory Reactions
The proposal has already drawn political scrutiny. U.S. Senator Elizabeth Warren labelled the offer a “five-alarm antitrust fire,” warning that a merger between two major television operators could breach anti-monopoly laws and raise national security concerns due to its investor links.
At the same time, Netflix’s $72 billion bid faces criticism from lawmakers and Hollywood unions over fears of potential job losses and higher consumer prices. Netflix co-CEO Ted Sarandos dismissed Paramount’s move as “entirely expected,” while asserting that his company’s approach would create rather than cut jobs.
Market Response and Ongoing Tensions
Shares of Paramount rose 7.3% on Monday, while Warner Bros Discovery climbed 5.3%. Netflix stock, by contrast, fell 4%, reflecting investor uncertainty amid the escalating bidding war.
Industry analysts predict a prolonged battle as Paramount attempts to sway shareholders and regulators. The studio insists that its proposal offers a faster route to regulatory approval, continued support for theatrical releases, and a vision that strengthens Hollywood’s creative foundations.
David Ellison, Paramount’s CEO, accused Warner Bros of bias in favour of Netflix, claiming the sale process lacked fairness. Despite those tensions, both companies appear determined to claim Warner Bros Discovery’s crown jewel assets — and reshape the future of global entertainment.
with inputs from Reuters