Paramount makes $108 billion bid for Warner Bros., tops Netflix offer

Paramount Skydance has challenged Netflix’s proposed acquisition of key Warner Bros. assets by launching a higher all-cash hostile bid for the entire company, intensifying a corporate showdown that could redefine the power balance in global entertainment.

The battle for control of one of Hollywood’s most influential studios has taken a dramatic turn as Paramount Skydance Corp. issued a hostile takeover bid for Warner Bros. Discovery, offering $30 a share in cash on Monday (December 10). The offer values Warner Bros. at $108.4 billion including debt, eclipsing the bid approved last week from Netflix, which offered $27.75 per share through a mix of cash and stock.

While Netflix seeks to acquire Warner Bros.’ prized entertainment assets—its film studio, HBO, and streaming operations—Paramount’s proposal covers the entire company, positioning itself as the more comprehensive and immediate alternative. In a statement, Paramount CEO David Ellison said Warner Bros. shareholders “deserve an opportunity to consider our superior all-cash offer.”

The move sets up a high-stakes corporate showdown that could significantly reshape the media landscape, determining whether the future of Hollywood lies with legacy studios consolidating or digital streaming giants expanding their dominance.

White House politics, antitrust fears add complexity

The escalating bidding war is unfolding under the close watch of regulators and the White House. Ellison has publicly pointed to his family’s longstanding ties with President Donald Trump, and financing disclosures revealed that Trump’s son-in-law Jared Kushner is participating in the Paramount bid through Affinity Partners. Trump has said he expects to have a role in approving any Warner Bros. sale but has not discussed the matter with Kushner.

Both the Netflix and Paramount proposals face significant antitrust scrutiny, given the potential concentration of media power. Analysts say the substantial breakup fees included in each offer underscore the regulatory risks. Warner Bros. said its board will review Paramount’s bid but has not withdrawn support for the Netflix deal.

Shareholder math and strategic vision under the microscope

Parsing which offer is objectively superior is complicated by Warner Bros.’ plan to spin off cable networks, including CNN, TNT and Discovery Channel, before any sale. Paramount argues its proposal delivers $18 billion more in cash than Netflix’s, but analysts point out that the value of divested channels could push Netflix’s bid higher.

Early investor reactions were mixed: Warner Bros. shares rose 4.4%, Paramount gained 9%, while Netflix dipped 3.4%. Paramount says its tender offer will remain open for 20 business days.

Financing details show Paramount has secured $11.8 billion from the Ellison family, $24 billion from three Middle Eastern sovereign wealth funds, and additional backing from RedBird Capital and Affinity Partners. China’s Tencent, once expected to participate, has withdrawn.

A long battle ahead

Regulatory reviews across multiple jurisdictions are likely to extend the timeline regardless of who prevails. Market analysts warn that the takeover saga may stretch well into 2026. Prediction markets now place the probability of Netflix closing its deal at 16%, down sharply after Paramount’s surprise hostile bid.