Paramount Skydance has reignited the battle for control of Warner Bros Discovery (WBD), launching a hostile all-cash bid for the entire company just days after Netflix unveiled an $82.7bn agreement to acquire WBD’s studio and streaming assets.
The surprise offer escalates the biggest takeover fight Hollywood has seen in years and sets up a direct clash between two of the industry’s most powerful players.
Netflix’s proposal, announced on Friday, covers WBD’s iconic Warner Bros film studio and the HBO cable network, but excludes its linear television holdings such as CNN and the Discovery Channel. Paramount’s bid, tabled on Monday morning and sent directly to WBD shareholders, values the group at $108.4bn — a significant premium to its market value and sharply higher than Netflix’s offer. WBD said it would “carefully review and consider” the proposal and provide guidance to shareholders within two weeks.
Paramount is being spearheaded by David Ellison and backed by his father, Oracle founder Larry Ellison. Both maintain close ties with the Trump administration, which had earlier signalled support for a Paramount-led acquisition of WBD. A regulatory filing on Monday also revealed financial backing from outside investors including Jared Kushner’s Affinity Partners, Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority.
In its pitch to investors, Paramount argued that its bid offers better value, faster completion and fewer regulatory hurdles than Netflix’s mix of cash and stock. “WBD shareholders deserve an opportunity to consider our superior all-cash offer,” David Ellison said, calling Netflix’s deal “an inferior proposal” with an uncertain future for WBD’s traditional TV networks.
Netflix, however, expressed little alarm. Co-chief executive Ted Sarandos described Paramount’s move as “totally expected” and said he remained “super confident” in securing regulatory clearance.
The Ellisons’ aggressive move followed weeks of tension. Paramount had already submitted several takeover proposals that WBD rejected. Last week, its attorneys accused WBD of pursuing a “predetermined outcome” favouring Netflix and abandoning a fair process.
The competing bids have triggered anxiety across the US media landscape, especially within CNN and CBS News. Netflix’s plan would spin off WBD’s traditional networks, while a Paramount takeover could merge CNN and CBS News, raising concerns over job cuts.
The Ellisons’ hostile offer expires on 8 January, though it may be extended. “We’re here to fight for value,” David Ellison told analysts. “Our proposal is superior in every dimension.”
