Hollywood’s biggest takeover saga in a decade has taken a dramatic turn. Paramount Skydance, led by David Ellison, has launched a hostile $108.4 billion bid to acquire Warner Bros Discovery (WBD), just days after Netflix announced an agreement to buy major WBD assets for $82.7 billion.
The move not only challenges Netflix’s position as the frontrunner but escalates a corporate power struggle that now spans Wall Street, Washington, Silicon Valley, and Hollywood’s major guilds.
A Higher Offer and a Direct Appeal to Shareholders
Paramount’s new offer goes straight to WBD’s shareholders, bypassing the board entirely—an aggressive tactic that signals impatience with the company’s rejection of earlier proposals.
Under the terms:
- Paramount is offering $30 per share,
- Netflix had offered $27.75 per share (a mix of cash and stock),
- Paramount says its bid is $18 billion more in cash than Netflix’s deal.
Crucially, Paramount’s bid covers all of WBD, while the Netflix proposal only includes the studio and streaming business.
According to CNBC reports, these terms were rejected by the WBD board last week, indicating that the leadership already preferred the Netflix offer. Paramount argues that the board is not acting in shareholders’ best interest.
Paramount Questions the Integrity of WBD’s Process
In a sharply worded letter, Paramount accused WBD of leaning heavily in favour of Netflix—even before evaluating all offers.
Paramount cited internal reports claiming the Netflix deal had been described inside WBD as a “slam dunk,” while its own bid was downplayed. The company suggests this shows a pre-determined outcome, undermining competitive fairness.
Industry analysts say the challenge reveals Ellison’s ambition to build a media conglomerate capable of competing with Netflix, Amazon, Apple, and Disney—all of which now dominate streaming and content distribution.
Paramount’s effort is buoyed by strong financing:
- Equity backing from the Ellison family
- Support from RedBird Capital
- $54 billion in debt commitments from Bank of America, Citi, and Apollo
This level of financial muscle underscores how determined the company is to secure WBD’s vast library and global network.
Why Netflix Wanted the Deal First
Last Friday, Netflix stunned the industry by winning the initial bidding war against Paramount and Comcast, agreeing to acquire WBD in a massive equity transaction worth $82.7 billion including debt.
It would be the biggest acquisition in Netflix’s history, and one that carries a $5.8 billion break-up fee if the deal collapses.
Netflix’s strategy is straightforward:
gain exclusive control over premium IP, reduce reliance on external studios, and strengthen its defence against rising content costs.
With WBD under its wing, Netflix would own:
- Warner Bros’ legendary film studio
- HBO and its highly regarded Originals
- DC Entertainment
- Global distribution and licensing infrastructure
- A deep content library spanning decades
However, the deal faces both regulatory and political skepticism.
Antitrust and Political Pressure Intensify
Two questions now dominate conversation in Washington:
- Will regulators allow Netflix to absorb one of its biggest competitors?
- Would a Paramount–WBD merger face similar legal challenges?
President Donald Trump has already signaled discomfort, saying the Netflix deal “could be a problem” due to market-share concerns.
Hollywood unions and lawmakers have expressed worries about:
- Potential job losses
- Consolidation of creative power
- Higher consumer costs
- Pressure on independent studios
Still, Netflix remains confident it can navigate regulatory scrutiny, arguing that the acquisition will create more value for consumers and talent.
Paramount’s Strategic Ambition
Paramount has shown persistent interest in acquiring WBD since September, even as its own box office performance has been inconsistent. Although the studio trails competitors like Disney and Universal in theatrical returns, it benefits from deep-pocketed support from Larry Ellison—founder of Oracle.
A successful bid would instantly reposition Paramount as a heavyweight rival to Netflix, combining:
- Warner Bros’ legacy brands
- Paramount’s production engine
- Skydance’s growing tech-driven media portfolio
Such a merger would create one of the largest content ecosystems in Hollywood.
What Happens Next?
For now, WBD is locked in a high-stakes triangle:
- A signed agreement with Netflix
- A more generous, hostile offer from Paramount
- Mounting scrutiny from regulators and political actors
If WBD walks away from the Netflix deal, it must pay $2.8 billion in penalties. Conversely, Netflix owes WBD $5.8 billion if antitrust regulators block the merger.
The battle now moves from the boardroom to shareholders, regulators, and the court of public opinion—a place where Hollywood has always thrived.
Paramount’s move ensures that the fight for Warner Bros Discovery is far from over. And whatever the outcome, it will reshape the global entertainment landscape for years to come.
