Journalism of Courage
Paramount Skydance has launched a hostile $108.4 billion bid for Warner Bros Discovery, moving directly to shareholders after the company rejected its earlier offers in favour of a deal with Netflix.
Netflix had secured a $72 billion equity agreement on Friday for Warner Bros Discovery’s TV, film and streaming assets, including HBO and DC Comics. The deal carries a $5.8 billion break-up fee and is expected to face antitrust scrutiny.
US President Donald Trump has flagged potential concerns over Netflix’s planned $72bn deal to buy Warner Brothers Discovery’s movie studio and popular HBO streaming networks.
The hostile move by Paramount means the months-long competition for Warner Bros Discovery is not over.
Paramount told Reuters it is offering $30 per share in cash for all of Warner Bros Discovery, including its Global Networks business, and is asking shareholders to reject the Netflix agreement.
Reuters reported that Warner Bros’ board had raised concerns about Paramount’s financing earlier in the week. Paramount said it submitted six proposals over the past 12 weeks, all of which were turned down.
In a letter to Warner Bros, Paramount argued the sale process had favoured Netflix, claiming the company had “abandoned a fair bidding process” and effectively predetermined Netflix as the winner. This followed reports that Warner Bros executives had called the Netflix deal a “slam dunk” while speaking negatively about Paramount’s offer.
Paramount CEO David Ellison told CNBC on Monday there was an “inherent bias” against his company in the bidding process. “We will be the largest investor in this deal,” he said. “We’re fighting for our shareholders, and we’re also fighting for the shareholders of Warner Bros Discovery.”
Paramount’s proposal, if accepted, would combine two major studios. Analysts told Reuters the merger could still face regulatory questions and concerns about job losses as the industry consolidates.
Netflix’s plan is also facing bipartisan criticism in Washington and pushback from Hollywood unions, who warn the takeover could reduce competition and increase costs for consumers.
Bloomberg reported that Trump met Netflix co-CEO Ted Sarandos in mid-November and told him Warner Bros should sell to the highest bidder.
Morningstar analysts said a joint Paramount–Warner Bros entity would have substantial overlap, and that Netflix would need to either raise prices or run separate platforms to cover its costs.
Netflix has argued that acquiring Warner Bros Discovery would improve its content pipeline and reduce its reliance on outside studios as it expands into gaming and live entertainment.
Sarandos said the company was “highly confident” in the regulatory process and that the deal would benefit consumers, talent and shareholders.
Analysts say exclusive access to Warner Bros’ catalogue including HBO, Warner Bros films and DC Comics would give Netflix immediate reach in gaming, merchandise and new content areas.
Paramount’s tender offer is open until 8 January 2026 unless extended. Shares of Warner Bros Discovery and Paramount rose by about 5–6% in early trading on Monday, while Netflix shares dipped slightly.
(With inputs from agencies)
