Paramount Skydance Corp. on Monday unveiled a $108.4 billion hostile offer for Warner Bros Discovery, escalating a fierce takeover battle with Netflix, which last week announced a $72 billion deal to acquire the media giant.
The surprise bid positions Paramount, led by David Ellison, as a direct challenger to Netflix in the race to control Warner Bros’ expansive film, television and streaming catalogue.
Netflix had secured an agreement on Friday to buy Warner Bros Discovery through an equity transaction valued at $82.7 billion, including debt. The contract carries a $5.8 billion break-up fee, underscoring the high financial stakes surrounding the acquisition.
Paramount is offering $30 per share, topping Netflix’s $28 per share proposal and raising questions about the fairness of Warner Bros Discovery’s evaluation process. In a letter to Warner Bros management, Paramount alleged the company may have favoured Netflix from the outset, citing reports that executives internally labelled the Netflix deal a “slam dunk” while dismissing Paramount’s approach.
Analysts say Paramount’s aggressive move reflects its ambition to build a media powerhouse capable of competing not only with Netflix but also tech-driven entrants like Apple.
Paramount has pursued Warner Bros Discovery since September, submitting multiple offers as part of its long-term strategy to expand its entertainment footprint. Although a major Hollywood studio, Paramount’s box office results in recent years have often lagged behind Disney, Universal and Warner Bros. Its takeover ambitions draw strength from deep financial backing from Oracle co-founder Larry Ellison.
The fight for Warner Bros Discovery has also drawn political attention. U.S. President Donald Trump has raised concerns about the level of market power Netflix would wield if the acquisition goes through. Bloomberg reported that Trump met Netflix co-CEO Ted Sarandos in November and urged the company to sell to the highest bidder.
Lawmakers and Hollywood unions have also expressed reservations about Netflix’s deal, warning of potential job losses, fewer content options for consumers, and major operational overlaps that could affect streaming revenues unless Netflix raises subscription prices or runs multiple platforms — scenarios many consider unlikely for now.
Netflix maintains confidence in securing regulatory approval, arguing that bringing Warner Bros Discovery under its umbrella will deliver long-term value to subscribers, investors and creative partners. The company says the acquisition supports its wider strategy to control premium intellectual property and expand into gaming, live entertainment and other consumer services.
Paramount’s hostile bid intensifies the struggle for one of Hollywood’s most valuable content libraries, signalling deepening competition and shifting power dynamics across the global entertainment and streaming landscape.
