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Paramount Skydance Launches $108.4B Hostile Bid for Warner Bros, Outbidding Netflix
Paramount Skydance makes a $108.4B hostile bid for Warner Bros Discovery, challenging Netflix’s $72B offer. The move brings new twists to the media battle, with concerns over competition and political ties.
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by Muhammad Hashir
2025-12-09
Paramount Skydance Launches $108.4B Hostile Bid for Warner Bros, Outbidding Netflix

Paramount Skydance has launched a $108.4 billion hostile bid for Warner Bros Discovery (WBD), attempting to outbid Netflix’s $72 billion deal and reshape the media landscape. The proposal, made on Monday, is a direct challenge to Netflix’s recent victory in securing Warner Bros’ film and TV studios, including its coveted HBO and DC Comics assets.

The Warner Bros Discovery board is set to review Paramount's offer but remains committed to its recommendation to back Netflix’s proposal. The board advised that no immediate action should be taken regarding the new bid.

Paramount’s offer stands at $30 per share, including financing from several major sources such as Jared Kushner’s Affinity Partners, Middle Eastern sovereign wealth funds, and the Ellison family, including Larry Ellison, the founder of Oracle and one of the world’s wealthiest individuals. The bid is seen as a major attempt to bolster competition against Netflix, which has dominated the streaming space.

Strategic Argument and Political Ties

Paramount argues that its bid offers $18 billion more in cash to Warner Bros shareholders compared to Netflix’s offer. It also claims that the merger would be more advantageous for regulatory approval and would create a stronger Hollywood with a more competitive media environment. Paramount CEO David Ellison emphasized that the bid would benefit the creative community, consumers, and the broader film industry by ensuring enhanced competition.

The company’s backing from influential political and business figures, including Kushner, has raised eyebrows. Larry Ellison allegedly discussed the deal with former President Donald Trump, expressing concerns that Netflix’s deal would harm competition. However, Trump clarified that he had not spoken directly to Kushner about the bid, despite the involvement of high-profile figures tied to his administration.

Criticism of the Deal

While Paramount’s bid is aimed at bolstering competition, analysts and critics have warned that the deal could face significant antitrust scrutiny. Democratic lawmakers have already voiced their concerns, arguing that a merger between Paramount and Warner Bros could lead to market dominance, especially in cable television. U.S. Senator Elizabeth Warren (D-MA) strongly criticized the deal, calling it a “five-alarm antitrust fire” and raising concerns over potential political influence due to the involvement of Trump’s associates.

Netflix, on the other hand, has defended its own bid, highlighting its commitment to job creation and economic growth. Netflix co-CEO Ted Sarandos downplayed Paramount’s offer, suggesting that the proposed synergies touted by the company would likely result in job cuts. "Where do you think synergies come from? Cutting jobs?" Sarandos questioned at a UBS conference, while stressing Netflix’s focus on creating jobs.

The Battle for Warner Bros

The ongoing bidding war between Paramount and Netflix is a pivotal moment for the media and entertainment industries. The Warner Bros Discovery assets, which include the prestigious HBO network, Warner Bros films, and DC Comics, are highly valuable in the evolving streaming and content market. The battle reflects the growing influence of media conglomerates in the face of rapidly changing consumer preferences, with streaming platforms increasingly becoming the dominant force in entertainment.

Paramount's offer is also seen as an attempt to not only challenge Netflix but also outmaneuver Disney, which currently holds the largest market share in global entertainment. The deal’s implications on market consolidation have sparked concerns over fewer competitors and rising costs for consumers.

A Prolonged Fight Ahead

This media battle is far from over. Paramount’s bid has already led to a 7.3% increase in its shares, while Warner Bros Discovery shares rose 5.3%. Meanwhile, Netflix shares fell by 4% in response to the new offer. Paramount’s continued push for Warner Bros assets is likely to lead to a protracted negotiation process, with both companies attempting to sway regulators, shareholders, and lawmakers to their side.

Warner Bros, which is still reviewing its options, has raised concerns about Paramount’s acquisition process, claiming that it has not been given a fair chance in negotiations. Paramount also accused Warner Bros of “predetermining” Netflix as the winner, despite presenting several proposals over the past few months.

As the battle continues, both companies are likely to face tough regulatory hurdles, especially given the combined market power of the potential merger. With both offers on the table, the fate of Warner Bros Discovery remains uncertain, as the media world watches closely to see who will ultimately dominate the streaming and entertainment market.
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