In a dramatic escalation of the fight for one of Hollywood’s most valuable assets, Paramount Skydance has launched a $108.4 billion hostile takeover bid for Warner Bros. Discovery (WBD). The all-cash offer of $30 per share was announced on Monday, just days after WBD’s board accepted a rival $82.7 billion cash-and-stock deal from streaming giant Netflix. This aggressive maneuver, which bypasses WBD’s management and appeals directly to its stockholders via a tender offer, signals that the battle for the media conglomerate is far from over.
Paramount, led by CEO David Ellison, is positioning its proposal as a superior alternative that provides greater value and a clearer path to completion. The key difference lies in the scope: Paramount is bidding for the entire WBD company, including its Global Networks division (which houses assets like CNN, TBS, and the Discovery Channel), whereas Netflix’s deal only covers WBD’s streaming and studio assets, such as HBO Max, the Warner Bros. film and TV studios, and DC Comics. WBD was set to spin off its linear cable networks into a separate company as part of the Netflix transaction, a plan Paramount called “inferior.”
Paramount’s bid, which represents an enterprise value of $108.4 billion, is substantially more than the $82.7 billion enterprise value of the Netflix proposal. Paramount claims its offer delivers $18 billion more in cash to WBD shareholders than the mixed cash-and-stock Netflix consideration.
In a public statement, Paramount accused the WBD board of failing to “meaningfully engage” with its six prior proposals over the past 12 weeks, claiming the sale process was biased in favor of Netflix. Paramount also argues that a combined WBD-Netflix entity would face crippling regulatory scrutiny and antitrust challenges due to the massive market share concentration, a concern that US President Donald Trump has already flagged. Conversely, Paramount asserts its merger would be pro-competitive and receive quicker regulatory approval.
The Paramount offer is set to expire on January 8, 2026, unless extended. WBD’s board has stated it will “carefully review and consider” the hostile bid and will advise its shareholders within two weeks. The move places immense pressure on WBD’s management and board to justify their prior agreement with Netflix, as WBD shareholders now face a significantly higher, all-cash offer for the entire company. The media industry is bracing for what is expected to be a prolonged and high-stakes corporate showdown.
📚 Sources and Links
- Source: Indian Express Paramount launches $108.4 bn hostile bid for Warner Bros., challenging Netflix’s $72 bn
- Source: Business Today Bid war: Paramount ups ante with $108bn counter, overtakes Netflix for Warner Bros Discovery
- Source: CBS News Paramount Skydance makes bid for all of Warner Bros. Discovery valued at $108 billion
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