Paramount launches hostile $78-billion bid for Warner Bros. Discovery, challenging Netflix

by

Paramount isn’t giving up on acquiring Warner Bros. Discovery. After losing out in an initial bid last week, the company announced Monday it will attempt a $78 billion takeover, even though it wasn’t welcomed.

The move comes four days after Warner’s board unanimously selected Netflix as the winner.

Netflix made an offer of $72 billion—equivalent to $27.75 per share—to acquire a significant portion of Warner Bros., including its film and television studios, the Burbank studio lot, and the HBO and HBO Max streaming services. The total value of the deal, factoring in over $10 billion in Warner Bros. debt that Netflix would assume, reached $82.7 billion.

Paramount, with financial support from the Ellison family, made a final bid of $30 per share for Warner Bros. Discovery after initially offering $25 per share in an all-cash deal. Sources close to the auction, who weren’t allowed to speak publicly, said Paramount ultimately didn’t succeed in acquiring the company.

Paramount announced Monday that it made a $30 per share offer just before Netflix was declared the winning bidder.

David Ellison, Chairman and CEO of Paramount, told CNBC on Monday that they didn’t receive a response and are committed to completing the deal.

A Warner representative did not immediately provide comment.

Paramount is now attempting a hostile takeover of Warner Bros. Discovery by going directly to its shareholders, bypassing the company’s leadership and financial advisors. Paramount claims its offer is better than the one from Netflix, and that the Netflix deal would face a long and difficult review by antitrust regulators.

Paramount dismissed Netflix’s proposal as inadequate, arguing it would subject Warner shareholders to a lengthy and unpredictable regulatory review process across multiple countries. Paramount has historically relied on its good relationship with President Trump to help navigate the U.S. regulatory hurdles.

Warner Bros. Discovery continues to believe that Netflix submitted the best offer.

Netflix won’t be purchasing Warner’s cable networks like CNN, TBS, Food Network, and TLC. Instead, Warner plans to create a new, independent company called Discovery Global, with an estimated value of $3 to $4 per share.

Warner Bros. Discovery estimates that combining its value with Netflix’s stock price of $27.75 per share would result in shareholders receiving over $31 per share – a better deal than the offer from Paramount.

Netflix made an offer involving both cash and company stock. They estimate it will take between one and a half to eighteen months to get approval from regulators.

Speaking on CNBC, Ellison explained that in the financial world, cash remains the most important factor. He stated that their offer gives Netflix shareholders $17.6 billion more cash than their current agreement, and he’s confident Warner shareholders will approve it when they see the details.

Since mid-September, Paramount had submitted six bids for all of Warner Bros. Discovery.

On Sunday, President Trump expressed concern that Netflix’s acquisition of Warner Bros. Discovery might face issues due to the resulting dominance in the entertainment market.

Ellison stated that their offer would revitalize Hollywood, benefiting everyone involved – including filmmakers, moviegoers, and theaters. They anticipate increased competition, more money invested in content, a wider variety of movies being released in cinemas, and ultimately, a more robust film industry.

Paramount’s tender offer is set to expire on Jan. 8, 2026, unless it’s extended.

Warner Bros. and Paramount stocks both rose sharply Monday morning, increasing by 5% to 6%. Meanwhile, Netflix shares saw a slight decrease.

Read More

2025-12-08 19:31