Paramount Skydance Corp. on Monday announced a $108.4 billion hostile bid for Warner Bros Discovery, challenging Netflix’s $72 billion acquisition of the media company.
The move positions Paramount, run by David Ellison, as a direct competitor to Netflix in the effort to control Warner Bros’ film, television, and streaming assets.
Netflix secured a deal last Friday to acquire Warner Bros Discovery through an equity transaction valued at $82.7 billion, including debt.
The agreement carries a $5.8 billion break-up fee, showing the high stakes of the acquisition. Paramount’s bid, which offers $30 per share compared with Netflix’s $28 per share, questions the integrity of Warner Bros Discovery’s sales process.
What Paramount is saying
In a letter to Warner Bros, Paramount alleged that the company may have predetermined Netflix as the preferred buyer. The claim followed reports that Warner Bros management described the Netflix deal internally as a “slam dunk” while criticizing Paramount’s offer. Analysts say Paramount’s intervention reflects its ambition to build a media company capable of competing with Netflix and other tech entrants into media, including Apple.
Paramount has been pursuing Warner Bros Discovery since September, submitting multiple offers to acquire the company outright. While Paramount is a major Hollywood studio, its box office performance has been inconsistent in recent years, often trailing competitors like Disney, Universal, and Warner Bros. The company benefits from substantial financial backing from Oracle co-founder Larry Ellison, giving it the resources to pursue large-scale acquisitions.
What you should know
The deal has also drawn attention from U.S. political figures. President Donald Trump expressed concerns about the potential concentration of market power if Netflix completes its acquisition. Bloomberg News reported that Trump met with Netflix co-CEO Ted Sarandos in mid-November, encouraging the company to sell to the highest bidder.
Netflix’s deal has faced scrutiny from lawmakers and Hollywood unions, who cited potential job losses and higher costs for consumers. Other reports note that the combined company could face significant operational overlap, which may depress streaming revenue unless Netflix increases subscription fees or operates separate platforms unlikely scenarios in the near term.
Despite the criticism, Netflix remains confident in regulatory approval. The company has argued that the acquisition will create value for consumers, shareholders, and talent while reducing reliance on external studios. Netflix’s long-term strategy includes securing exclusive control over premium intellectual property and expanding into gaming, live entertainment, and broader consumer-focused services.
Paramount’s bid escalates the battle for one of Hollywood’s largest content libraries, highlighting the competitive pressures and strategic stakes in the streaming and entertainment sector.
