Paramount Skydance recently made a bold move by initiating a hostile takeover bid of $108.4 billion to acquire Warner Bros. Discovery (WBD), following Netflix’s $82.7 billion acquisition agreement with Warner.
Paramount has put forward a direct offer of $30 per share to WBD shareholders, providing $18 billion more in cash compared to Netflix’s offer of $27.75 per share, which included cash and Netflix shares.
In contrast to Netflix’s deal that only involves WBD’s Hollywood studios and streaming business, Paramount aims to acquire the entirety of WBD. CNBC reported that WBD’s board had previously rejected similar terms from Paramount.
Paramount’s CEO, David Ellison, criticized WBD’s board for pursuing an inferior proposal, emphasizing the uncertainties associated with the stock-cash mix, future trading value, and regulatory challenges. The bid from Paramount is supported by equity financing from the Ellison family, RedBird Capital, and significant debt commitments from financial institutions.
Despite Netflix emerging victorious in a bidding war with Paramount and Comcast, Paramount’s hostile bid is expected to prolong the battle for control over one of Hollywood’s renowned studios.
Techcrunch event
San Francisco
|
October 13-15, 2026
The proposed acquisition by Netflix has sparked antitrust concerns due to the consolidation of two major streaming platforms. President Donald Trump has expressed reservations about the deal’s potential impact on market share. A potential deal between WBD and Paramount is also likely to face similar regulatory scrutiny.
As part of the agreement, Netflix would compensate WBD with $5.8 billion if the deal falls through, while WBD would owe Netflix $2.8 billion in case of a collapse.
Netflix has yet to respond to inquiries regarding the recent developments.
