Paramount Skydance Launches Hostile $108.4 Billion Bid for Warner Bros Discovery

Netflix secured a $72 billion equity agreement on Friday for Warner Bros Discovery’s television, film and streaming businesses, per Reuters. But Paramount’s counter-strike signals that the contest for Warner Bros—and its powerful franchises including HBO and DC Comics—remains wide open.

The company said its $30-per-share, all-cash proposal would deliver shareholders roughly $18 billion more than Netflix’s mix of cash and stock, while potentially avoiding some regulatory complications. According to Reuters, Paramount argued that merging the two studios would strengthen the entertainment marketplace for creators, theaters and viewers by enhancing competition.

“We believe our offer will create a stronger Hollywood,” Paramount CEO David Ellison said in a statement.

Netflix’s bid carries a $5.8 billion breakup fee and is expected to draw intense antitrust scrutiny, Reuters reported. U.S. President Donald Trump publicly questioned the deal over the weekend, and bipartisan lawmakers as well as Hollywood unions have expressed concern that Netflix’s plan could drive layoffs and higher consumer prices. Still, analysts warn that a Paramount-Warner Bros tie-up could invite similar pushback due to its impact on the studio landscape.

According to Reuters, the Warner Bros board was already briefed last week on Paramount’s improved offer but raised worries over its financing. Paramount maintains Warner Bros Discovery has not given the company fair consideration despite receiving six proposals over a 12-week span.

Related: Paramount–WBD Deal Could Unite Streaming Giants Under One App

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The new all-cash offer represents a 139% premium over Warner Bros Discovery’s unaffected share price and exceeds Netflix’s $27.75 bid, per Reuters. “The Warner Bros Discovery acquisition is far from over,” eMarketer senior analyst Ross Benes told Reuters, predicting a drawn-out political and regulatory struggle.

Paramount has been pursuing Warner Bros since September with the intent to build a powerhouse capable of challenging Netflix as well as major tech rivals like Apple that have ramped up entertainment investments. The studio says a combined Paramount+ and HBO Max would form a stronger streaming competitor to Netflix, Disney+ and Amazon Prime Video.

The deal would also bring together wide-reaching TV networks—including CNN, TNT and Paramount’s broadcast and cable assets—which Paramount says would better support traditional television during a turbulent industry transition.

Paramount has formally accused Warner Bros of favoring Netflix throughout the sale process, even labeling the rival offer a “slam dunk,” according to Reuters. Ellison intensified that criticism during a CNBC appearance Monday, saying there is an “inherent bias” his company must overcome as it advocates for both sets of shareholders.

Financial analysts note Paramount’s resources are bolstered by Larry Ellison—Oracle co-founder and one of the world’s wealthiest individuals—who provides deep financial backing and maintains significant political connections, Reuters added.

Meanwhile, Netflix executives argue that exclusive access to Warner Bros Discovery’s intellectual property would accelerate its push into gaming, live entertainment and consumer products, per Reuters reporting. The streaming giant has stated it is “highly confident” regulators will approve its plan.

Whether regulators or shareholders will ultimately favor Netflix’s vision or Paramount’s bigger check now remains the defining question. As one analyst told Reuters, the drama is unlikely to end soon—Hollywood’s latest blockbuster is unfolding not on screen, but in the boardroom.

Source: Reuters