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Tuesday, Dec 09, 2025
Outside the box.
Paramount launches $108 billion hostile bid to derail Warner Bros-Netflix sale
Paramount Skydance, backed by Jared Kushner’s firm and Middle East sovereign funds, offers all-cash takeover for full Warner Bros Discovery, challenging Netflix’s recent agreement
Paramount Skydance has mounted a dramatic challenge to the recent agreement between Netflix and Warner Bros Discovery, launching a hostile all-cash bid of approximately $108.4 billion for the entire media group.
The offer values Warner at around $30 per share and is backed by major financial backers including the Ellison family, private equity firm RedBird Capital, Jared Kushner’s Affinity Partners and several sovereign wealth funds from the Middle East.
The bid includes Warner Bros Discovery’s studios, streaming platforms, and its cable-network businesses — assets excluded from Netflix’s prior bid.
Netflix had already agreed last week to acquire Warner’s film and television studios, as well as its streaming arm, in a deal valued at roughly $72 billion in equity or about $82.7 billion including debt.
In response to Paramount’s offer, Warner Bros Discovery’s board said it will review the bid, but for the moment, it continues to recommend the Netflix proposal.
The board has urged shareholders to “take no action at this time”.
Paramount argues its offer is superior on both price and certainty.
Company executives say the all-cash structure improves regulatory prospects and delivers a larger, more reliable sum for shareholders — an $18 billion premium over Netflix’s bid.
Paramount’s chief executive has stressed that the merger would support Hollywood’s creative ecosystem by preserving theatrical releases, enabling competition against streaming behemoths, and maintaining support for talent and production rather than promoting a streaming-only model.
Still, the proposal may face intense regulatory scrutiny.
Observers warn that combining two major entertainment companies — including streaming services, studio production and cable networks — could raise antitrust concerns, especially given the trend toward media consolidation.
Some US lawmakers have already raised warnings about the impact on competition if a merged Paramount-Warner conglomerate were to control too much of what audiences consume on television and streaming platforms.
Even as the bidding battle heats up, stock markets have reacted: shares in Paramount and Warner Bros Discovery rose, while Netflix shares fell.
Meanwhile, Comcast — another candidate earlier in the process — appears to have stepped back from the race.
As shareholders prepare to consider the new offer, Hollywood and global media markets await what could become one of the most consequential reshufflings of power in the entertainment industry in decades.
The offer values Warner at around $30 per share and is backed by major financial backers including the Ellison family, private equity firm RedBird Capital, Jared Kushner’s Affinity Partners and several sovereign wealth funds from the Middle East.
The bid includes Warner Bros Discovery’s studios, streaming platforms, and its cable-network businesses — assets excluded from Netflix’s prior bid.
Netflix had already agreed last week to acquire Warner’s film and television studios, as well as its streaming arm, in a deal valued at roughly $72 billion in equity or about $82.7 billion including debt.
In response to Paramount’s offer, Warner Bros Discovery’s board said it will review the bid, but for the moment, it continues to recommend the Netflix proposal.
The board has urged shareholders to “take no action at this time”.
Paramount argues its offer is superior on both price and certainty.
Company executives say the all-cash structure improves regulatory prospects and delivers a larger, more reliable sum for shareholders — an $18 billion premium over Netflix’s bid.
Paramount’s chief executive has stressed that the merger would support Hollywood’s creative ecosystem by preserving theatrical releases, enabling competition against streaming behemoths, and maintaining support for talent and production rather than promoting a streaming-only model.
Still, the proposal may face intense regulatory scrutiny.
Observers warn that combining two major entertainment companies — including streaming services, studio production and cable networks — could raise antitrust concerns, especially given the trend toward media consolidation.
Some US lawmakers have already raised warnings about the impact on competition if a merged Paramount-Warner conglomerate were to control too much of what audiences consume on television and streaming platforms.
Even as the bidding battle heats up, stock markets have reacted: shares in Paramount and Warner Bros Discovery rose, while Netflix shares fell.
Meanwhile, Comcast — another candidate earlier in the process — appears to have stepped back from the race.
As shareholders prepare to consider the new offer, Hollywood and global media markets await what could become one of the most consequential reshufflings of power in the entertainment industry in decades.
