The battle for Warner Bros Discovery intensified on Monday as Paramount Skydance launched a $108.4 billion hostile bid, aiming to outmaneuver Netflix, which had previously secured a $72 billion equity deal for Warner Bros Discovery’s studios, TV, and streaming assets.
Paramount’s offer, at $30 per share in cash, promises shareholders $18 billion more than Netflix’s deal, and claims to offer an easier regulatory approval path. Paramount CEO David Ellison emphasized that the merger would benefit Hollywood, movie theaters, and consumers, creating a stronger competitive landscape.
The bid is backed by the Ellison family, private equity firm RedBird, Jared Kushner’s Affinity Partners, and Middle Eastern sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. Analysts, however, warn that the deal carries risks from the additional debt required to finance the transaction.
Netflix’s deal includes a $5.8 billion break-up fee and is expected to face antitrust scrutiny, with President Donald Trump raising questions about the transaction over the weekend. Paramount has argued that the Warner Bros board demonstrated bias in favor of Netflix, rejecting multiple proposals from Paramount over the past 12 weeks.
The acquisition race for Warner Bros, including its HBO and DC Comics assets, is now far from over. Analysts predict a prolonged battle, as Paramount appeals to shareholders, regulators, and politicians to challenge Netflix’s current position.
Shares reacted strongly on Monday, with Paramount up 6.8%, Warner Bros Discovery up 5.5%, and Netflix down 4%. The showdown underscores growing competition and consolidation concerns within the media and streaming industry.
