Netflix Deal Under Threat: Paramount Launches $108.4 Bn Hostile Bid for Warner Bros. Discovery

Paramount Skydance has escalated one of Hollywood’s most dramatic takeover battles in decades, launching a $108.4 billion hostile bid for Warner Bros. Discovery (WBD). The move comes just days after Netflix appeared to clinch a $72 billion equity deal for WBD’s studios and streaming assets – but Paramount’s bold counteroffensive has thrown the outcome into fresh uncertainty.

Paramount CEO David Ellison said the company is “going on the offensive,” emphasizing that the offer is fully backed by the Ellison family, RedBird Capital and multiple sovereign wealth funds. “We believe our offer will create a stronger Hollywood,” Ellison said, framing the bid as pro-competition and beneficial for creators, theaters and consumers.

A Battle to Outbid Netflix

Netflix’s agreement, announced Friday, proposed acquiring Warner Bros. film and TV studios, HBO and HBO Max, while spinning off the cable TV networks (CNN, TNT, HGTV, Discovery) into a separate public entity. Paramount, however, is pursuing the entire company, offering $30 per share in cash – a 139% premium over WBD’s undisturbed stock price – compared to Netflix’s $27.75 mixed offer.

Paramount argues its all-cash deal provides “$18 billion more in cash than the Netflix consideration” and faces fewer regulatory hurdles. “Our proposal is superior to Netflix’s in every dimension, higher headline value, increased certainty in that value, greater regulatory certainty, and a pro-Hollywood, pro-consumer and pro-competition future,” Ellison said.

The Financing Behind the Bid

According to a regulatory filing, the bid is backed by $40.7 billion in equity and $24 billion in debt financing involving the Ellison family, RedBird Capital, Jared Kushner’s Affinity Partners, and sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi. These investors have agreed to forgo governance rights, a move designed to ease regulatory concerns.

Larry Ellison, the Oracle founder and the world’s second-richest person – is a significant backer of the deal. His influence and close ties to the White House have raised eyebrows in Washington.

“While it is perhaps a sad commentary on the U.S. that Paramount thinks its closeness to the occupant of the Oval Office will help it seal the deal, it is merely doing what it can to steal a march on its rival.” Chris Beauchamp of IG Group commented

Criticism and Political Pressure

Antitrust concerns loom large. Analysts warn that merging two major media giants could trigger regulatory pushback, especially after Democratic senators warned last month that such consolidation would mean “one company controlling almost everything Americans watch on TV.”

Hollywood labor groups have also sharply criticized the Netflix deal, with the Writers Guild saying it “must be blocked.” Theater owners called it “an unprecedented threat.” Netflix executives Ted Sarandos and Greg Peters defended their bid, stating the deal is “pro-consumer, pro-innovation, pro-worker, pro-creator, pro-growth,” and insisting they are “highly confident” in regulatory approval.

Netflix, meanwhile, secured $59 billion in bank financing and reportedly discussed the deal with President Trump. Sarandos’ assurances that “We’ll continue to go to the theaters through Warner Bros” did little to quell industry fears about potential changes to theatrical strategy.

Paramount’s Case to Shareholders

Because Paramount’s bid is a tender offer, it must convince WBD shareholders to sell their shares directly. “WBD shareholders deserve an opportunity to consider our superior all-cash offer,” Ellison said. “Our public offer… provides superior value, and a more certain and quicker path to completion.”

Paramount claims Warner Bros. “never engaged meaningfully,” despite six proposals over 12 weeks. Inside sources say Warner Bros. management viewed the Netflix deal as a “slam dunk.” Ellison, speaking to CNBC, said there was an “inherent bias” in the process.

To counter Netflix’s narrative, Paramount launched a website — StrongerHollywood — laying out its bid and arguing it would “enhance competition, increase content spending and boost theatrical output.” The company estimates $6 billion in synergies across operations while emphasizing that creative teams will remain intact.

What Comes Next

With Netflix’s offer carrying a $5.8 billion breakup fee and facing its own regulatory challenges, analysts expect a prolonged showdown.

“The Warner Bros Discovery acquisition is far from over,” said Ross Benes of eMarketer. “Paramount will appeal to shareholders, regulators, and politicians to try to stymie Netflix. The battle could become prolonged.”

Shares reacted sharply: Paramount surged 7.7%, Warner Bros Discovery rose 5%, while Netflix dropped 4.5%. Comcast has publicly stepped aside, saying it won’t stress its balance sheet to re-enter the bidding.

Both bids carry enormous implications for Hollywood’s future, from theatrical windows to consolidation and creator rights, and both companies now prepare for a public-facing campaign to sway regulators, investors and the industry.

Editor’s Note

This developing story is part of LAFFAZ Media’s ongoing coverage of major media mergers and acquisitions. Updates will be added as Warner Bros Discovery, Paramount and Netflix release new statements or regulatory actions begin.

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