Paramount Skydance on Monday launched a hostile $108.4 billion bid for Warner Bros Discovery, making a final attempt to outmaneuver Netflix and create a media giant capable of challenging the streaming leader.
Netflix had appeared to win the weeks-long bidding war on Friday with a $72 billion equity deal for Warner Bros Discovery’s TV networks, film studios, and streaming assets. But Paramount’s aggressive new offer ensures the fight over Warner Bros — and its valuable HBO and DC Comics properties — is far from over.
Warner Bros Discovery’s board said Monday afternoon that it would review Paramount’s proposal but maintained its recommendation in favor of Netflix, advising shareholders to “take no action” on Paramount’s offer for now.
Paramount’s $30-per-share cash bid is backed by financing from Affinity Partners — the investment firm run by Jared Kushner, son-in-law to U.S. President Donald Trump — as well as sovereign wealth funds from the Middle East. The Ellison family, led by billionaire Larry Ellison, is also supporting the deal. Larry Ellison, father of Paramount CEO David Ellison, has longstanding ties to the White House.
According to the Wall Street Journal, Ellison phoned Trump after Netflix’s deal was announced, arguing the agreement would reduce industry competition.
Paramount says its all-in acquisition of Warner Bros Discovery would give shareholders $18 billion more in cash than Netflix’s offer and face fewer regulatory hurdles. A merger between Paramount and Warner Bros would be one of the largest in entertainment history, consolidating major assets that could reshape the industry.
“We believe our offer will create a stronger Hollywood,” CEO David Ellison said, arguing that Paramount’s proposal provides higher value, greater certainty, and a more pro-competition outcome.
Unlike Netflix’s bid — which covers the film and TV studios, HBO, and HBO Max — Paramount seeks to acquire all of Warner Bros Discovery, including its cable networks.
Antitrust and Political Concerns Ramp Up
Despite Paramount’s assurances, analysts note that the deal would still trigger major antitrust scrutiny because it would merge two major TV operators. U.S. lawmakers have warned that such consolidation could lead to one company controlling too much of the TV landscape.
A combined Paramount–Warner Bros would exceed even Disney’s market share, deepening fears about a shrinking media industry.
Paramount’s offer represents a 139% premium over Warner Bros’ valuation before buyout talks began and surpasses Netflix’s mixed cash-and-stock offer of $27.75 per share.
At a UBS conference, Netflix co-CEO Ted Sarandos said Paramount’s hostile bid was “expected,” but insisted Netflix’s offer is stronger.
He also pushed back on Paramount’s projected “$6 billion in synergies,” saying:
“Where do synergies come from? Cutting jobs? Netflix isn’t cutting jobs — we’re creating them.”
Regulatory filings show the Ellison family and RedBird Capital agreed to backstop more than $40.7 billion in equity. The deal also includes funding from Kushner’s firm, Saudi and Qatari sovereign funds, and Abu Dhabi’s L’imad Holding.
Senator Elizabeth Warren criticized the merger sharply, calling it a potential “five-alarm antitrust fire” and expressing concern about political influence and national security risks tied to the investors.
If Warner Bros accepts Paramount’s bid, it must pay Netflix a $2.8 billion breakup fee. Netflix would owe $5.8 billion if its deal collapses — and both offers face serious antitrust questions.
Trump, meanwhile, said neither company is “a friend of mine,” adding he wants to make the choice that best supports competition. He denied speaking to Kushner about the Paramount bid.
Netflix’s offer has already drawn pushback from lawmakers and Hollywood unions worried about job losses and higher consumer prices.
Shares surged on Monday: Paramount up 7.3%, Warner Bros up 5.3%, while Netflix shares slipped 4%.
The Battle Is Far From Over
Sources previously told Reuters that Paramount had raised its bid to $30 per share last week, though Warner Bros’ board questioned the financing. Analysts believe the struggle over the company could drag on.
Paramount says it remains committed to theatrical releases, supporting Hollywood talent, and maintaining regulatory momentum. It also claims Warner Bros ignored multiple proposals and unfairly favored Netflix.
The company has sent a letter to Warner Bros, accusing it of abandoning a fair bidding process and preselecting Netflix as the winner.
With billions at stake and major political and regulatory players involved, the fight for Warner Bros Discovery is set to continue — and potentially reshape the future of Hollywood.