Paramount Skydance has launched a hostile $108.4 billion bid for Warner Bros Discovery, attempting to upend Netflix’s recently announced $72 billion acquisition of the studio’s TV, film, and streaming assets. The move signals Paramount’s last-ditch effort to create a media powerhouse capable of competing with the streaming giant.
Netflix secured its deal on Friday after weeks of bidding competition with Paramount and Comcast. Its offer valued Warner Bros Discovery’s assets at nearly $28 per share, with a total equity deal of $72 billion. Paramount’s offer, which values the company at $30 per share, rises to $82.7 billion when including Warner Bros’ debt. The bid also includes a $5.8 billion break-up fee payable to Netflix if its deal is blocked.
Paramount first approached Warner Bros in September, aiming to assemble an entertainment conglomerate capable of rivaling Netflix and tech companies expanding into media, such as Apple. The company’s previous offers were rejected, and executives have raised concerns about the fairness of the bidding process, alleging Warner Bros had predetermined Netflix as the winner. Industry reports suggest Warner Bros’ management described the Netflix deal as a “slam dunk” while speaking critically of Paramount’s bid.
Despite Paramount’s uneven box office record compared with Disney, Universal, and Warner Bros, analysts point to the studio’s financial backing as a key strength. Paramount is supported by Ellison’s resources, linked to Oracle co-founder Larry Ellison, the world’s second-richest person, and benefits from close ties with the Trump administration.
US President Donald Trump has publicly flagged concerns over Netflix’s planned acquisition, noting the company’s “big market share” and stating he would be personally involved in evaluating the deal. Bloomberg News reported that Trump met Netflix co-CEO Ted Sarandos in mid-November, suggesting Warner Bros should sell to the highest bidder.
Netflix’s offer has drawn scrutiny from lawmakers and Hollywood unions, who warn the deal could lead to layoffs and higher prices for consumers. Analysts at Morningstar highlighted potential overlaps in streaming revenue, noting that Netflix would need to either raise prices or operate separate platforms to maintain profitability.
Netflix executives have argued that the acquisition will benefit consumers, talent, and shareholders. The company aims to secure exclusive rights to Warner Bros’ intellectual property, reduce reliance on external studios, and support its expansion into gaming, live entertainment, and other consumer-focused sectors. Access to Warner Bros’ franchises, including Harry Potter, Game of Thrones, and Looney Tunes, would provide Netflix with immediate credibility, audience reach, and merchandising opportunities, particularly in gaming, where the company is still building original content and brand recognition.
Paramount’s bid sets the stage for a high-stakes contest that will test antitrust regulators, industry dynamics, and the influence of political figures, with the final outcome likely shaping the future of the global streaming landscape.
