Paramount has moved to a full-scale hostile bid for Warner Bros. Discovery (WBD), confronting the previously announced takeover agreement between Netflix and the Hollywood studio. The company said it is bypassing WBD’s board and appealing directly to shareholders with an all-cash offer valued at about $74.4 billion, or $30 per share. Unlike Netflix, Paramount is also offering to buy WBD’s cable networks, which sit outside the rival deal.
According to Paramount, its proposal represents roughly $18 billion more value for WBD investors than the competing Netflix transaction. Executives argue that WBD’s board undervalued the cable assets and that a straightforward cash bid offers greater certainty than a package whose final worth depends on stock-market moves.
The hostile move follows weeks of unsuccessful talks. Paramount says it submitted six proposals over a 12-week span, only to see WBD choose Netflix. By going directly to shareholders, the company is urging them to reject the existing agreement and support what it calls a superior and simpler offer.
Netflix’s Agreement And Regulatory Hurdles
The challenge comes just days after Netflix said it had reached a deal to acquire Warner Bros. Discovery, the studio behind franchises such as “Harry Potter” and streaming service HBO Max. That cash-and-stock agreement values WBD at $27.75 per share, giving the transaction an enterprise value of about $82.7 billion, including debt.
Under the terms announced by Netflix and WBD, the acquisition is expected to close within 12 to 18 months, subject to regulatory approvals in the United States and abroad. WBD is also proceeding with a previously announced separation of its cable operations, leaving assets such as CNN and Discovery outside the proposed combination.
In its statement, Paramount attacked the Netflix bid, warning that WBD shareholders could face a long, multi-country antitrust review with an uncertain outcome. It also said the mix of equity and cash in the Netflix offer makes the ultimate value of that deal harder to predict, in contrast to the fixed price that Paramount is offering.
Trump’s Comments And Political Dimension
The contest for Warner Bros. Discovery has already attracted attention from President Donald Trump, who said over the weekend that the $72 billion takeover agreement involving Netflix “could be a problem” because of the combined company’s potential market clout. He added that he expects to be involved in deciding whether federal regulators should sign off on the merger, hinting at political as well as regulatory scrutiny.
Some corporate-governance experts note that Paramount has ties to Trump’s circle. Chief executive David Ellison is the son of tech billionaire Larry Ellison, a long-time Trump supporter and one of the world’s wealthiest individuals. Observers say those connections may influence how the company approaches regulators and the administration if its hostile offer gains momentum.
The political backdrop comes as Washington regulators have been taking a tougher stance on large media and technology transactions, questioning whether consolidation in streaming, cable and telecoms could limit competition and consumer choice.
Market Reaction And Strategic Stakes
Investors initially welcomed the higher bid. Shares of Warner Bros. Discovery and Paramount each rose by around 5% to 6% in early trading on Monday, while Netflix stock edged lower as markets weighed the prospect of a bidding war or delays to the original deal.
For Paramount, taking control of WBD would significantly expand its film and television library, strengthen its position in streaming and give it additional leverage with theaters, advertisers and distributors. The company says a combined group would support more theatrical releases and larger content budgets, which it argues would benefit creators, cinema chains and audiences.
Under the current timetable, Paramount’s hostile tender offer for Warner Bros. Discovery is scheduled to expire on Jan. 8, 2026, unless it is extended. Until then, WBD shareholders will be weighing two competing visions for one of Hollywood’s most storied studios — one tied to Netflix’s global streaming empire, and another centered on an expanded Paramount betting on both streaming and traditional cable.
