Paramount crashes Netflix-Warner Bros party with £108bn rival bid
Paramount Skydance has launched a hostile takeover bid for Warner Bros Discovery (WBD), throwing the film titan’s recent deal with streaming giant Netflix into uncertainty.
On Monday, Paramount said its all-cash tender offer of $30 (£22.50) per share provides shareholders $18bn more than Netflix’s $27.75 per share offer.
Paramount chief executive David Ellison argued the deal is “a more certain and quicker path to completion”, and that WBD’s board is pursuing “an inferior proposal” by favouring Netflix.
He added: “We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theatre industry.”
The tender offer is directed straight at shareholders, giving them the opportunity to consider Paramount’s proposal rather than the Netflix transaction, which only covers WBD’s streaming and studio assets.
But Paramount’s bid, on the other hand, targets the whole company, including its linear TV networks.
Paramount has launched a dedicated website, ‘StrongerHollywood.com’, explaining the company’s offer and highlighting the differences with Netflix’s deal.
Netflix secured the $72bn deal last Friday to acquire Warner Bros Discovery’s TV, film studios, and HBO Max streaming assets after a bidding war with Paramount and Comcast.
The transaction in question, which values the assets at $82.7bn including debt, comes with a $5.8bn break-up fee if the deal is blocked or abandoned.
Paramount says this fee alone signals how uncertain Netflix is about regulatory approval, telling investors it can clear Washington more easily.
Kushner-linked capital enters the conversation
A new regulatory filing revealed that Affinity Partners, the private equity firm of Trump’s son in law, Jared Kushner, is backing Paramount’s hostile offer, alongside sovereign wealth funds from Saudi Arabia, Abu Dhabi and Qatar.
None of these investors will receive governance rights or board seats, but their presence strengthens Paramount’s argument that its financing package is fully secured and durable.
But the affiliation will likely raise eyebrows. Paramount is led by David Ellison, whose father Larry Ellison is a long-time supporter of President Trump.
Kushner’s involvement could give Paramount a smoother path than Netflix especially with Trump already warning the Netflix–WBD deal “could be a problem”, due to market share concerns.
Paramount has made multiple offers since September, citing concerns over the fairness of the WBD sale process.
The film giant alleges that management had predetermined Netflix as the winner, describing the Netflix deal as a “slam dunk” while dismissing Paramount’s offer.
Trump’s intervention
The deal is likely to face antitrust scrutiny in the US, with Donald Trump announcing on Sunday the Netflix-WBD combination could raise market share concerns.
He also indicated he would be personally involved in the approval process.
Netflix co-chief Ted Sarandos has previously expressed confidence in clearing red tape, and argued the acquisition would deliver value to consumers, talent, and shareholders.
The deal also gives Netflix exclusive control over high-profile intellectual property, including Harry Potter, Game of Thrones, and the DC Universe, which could support the company’s broader ambitions in gaming and live entertainment.
Paramount’s offer represents a renewed push to build a media powerhouse capable of challenging Netflix and tech companies entering the entertainment space, including Apple.
The outcome is likely to depend on shareholder response and regulatory review, with both bids subject to extended scrutiny.
Ben Barringer, head of tech research at Quilter Cheviot, said: “Paamount ultimately needs this deal more than Netflix”, as it “lacks the scale required for the modern age”.
He added: “For Netflix, this sort of asset remains a nice-to-have rather than a necessity. The ball is in Netflix’s court and it will likely want to show some discipline”.
Pressure mounts on Warner Bros
The outcome is likely to depend on shareholder response and regulatory review, with both bids subject to extended scrutiny.
Shares of WBD were up in pre-market trading, while Netflix shares saw modest fluctuations amid the renewed competition.
But it seems investors are now weighing the price gap, $30 versus $27.75, as well as two very different regulatory journeys.
David O’Hara, managing director at MKI Global Partners, argued: “With Paramount Skydance, the scrutiny shifts from streaming dominance to studio scale and cable reach … Both carry serious antitrust questions.”
He also added that Paramount’s all-cash structure gives shareholders “certainty over the value of the whole asset”, unlike Netflix’s offer which hinges on valuing a spun-off Networks business.
