Paramount Offers All Cash Bid to Derail Netflix Warner Bros Acquisition
Paramount Skydance launched a hostile takeover bid for Warner Bros Discovery on Monday. The company offers $30 per share in cash for all outstanding shares. This values the entire company at $108.4 billion. According to CNBC, Paramount went directly to shareholders after Warner Bros Discovery rejected previous offers.
The move comes three days after Netflix announced a deal to acquire Warner Bros Discovery. Netflix agreed to pay $27.75 per share for the company's streaming and studio assets. That deal valued those specific assets at $72 billion in equity, or $82.7 billion including debt. Paramount CEO David Ellison told CNBC his company will buy the entire Warner Bros Discovery operation. This includes CNN, TBS, TNT and other cable networks that Netflix excluded.
Paramount submitted six proposals to Warner Bros Discovery over 12 weeks. The company received little engagement from Warner Bros leadership. Ellison said Warner Bros CEO David Zaslav never responded to the December 4 bid of $30 per share. The tender offer expires January 8, 2026. Paramount secured $54 billion in debt commitments from Bank of America, Citi and Apollo. The Ellison family and RedBird Capital provide equity backing.
Why This Matters
The competing bids place Warner Bros Discovery shareholders in a difficult position. They must choose between Paramount's higher all-cash offer and Netflix's combination of cash and stock. Washington Post reports that financial backers of Paramount's bid include President Donald Trump's son-in-law Jared Kushner. This connection could influence regulatory review of either deal.
Warner Bros Discovery owns valuable intellectual property including HBO, DC Comics characters, and Harry Potter franchises. The company also controls news network CNN and sports properties. Paramount argues its offer provides shareholders $18 billion more in cash than Netflix's proposal. The company also claims faster regulatory approval due to its smaller size compared to Netflix.
Shareholders face uncertainty about the future value of cable networks under either scenario. Netflix plans to spin off Warner Bros Discovery's linear TV business before closing. Paramount wants to keep all assets together. Market analysts question whether cable channels retain significant value as viewers shift to streaming platforms.
Industry Implications
This bidding war reflects broader consolidation pressures in the media industry. Netflix operates the world's largest streaming service with more than 300 million subscribers. Warner Bros Discovery's HBO Max ranks fourth with 128 million subscribers. A combination would create a streaming giant controlling 43 percent of subscription video on demand market share, according to Al Jazeera.
Regulatory scrutiny presents the biggest obstacle for both bidders. President Trump stated Sunday the Netflix deal "could be a problem" due to market share concerns. The Justice Department typically reviews media mergers over 12 to 18 months. Senator Mike Lee announced plans for Senate antitrust hearings. Senator Elizabeth Warren called the Netflix proposal "an anti-monopoly nightmare." European Union regulators also plan to examine either transaction.
Traditional media companies face declining revenues from cable television operations. Streaming platforms compete for subscriber dollars in an increasingly crowded market. Cinema United, a global exhibition trade association, said the Netflix deal poses an "unprecedented threat" to movie theaters. Screen Actors Guild raised concerns about impacts on creative talent employment. Both proposed deals could trigger significant job cuts as merged companies eliminate duplicate functions.
Further Reading
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