Paramount’s $108 Billion Bid Targets All of Warner Bros., Undercutting Netflix Deal

Paramount surprised everyone by launching a hostile takeover bid for the whole of Warner Bros. Discovery last week (IndieWire), right after Warner picked Netflix’s offer. Paramount CEO David Ellison calls Netflix’s deal inferior and is pitching directly to Warner shareholders with more cash on the table. CNN reports the move stems from Paramount’s frustration after Warner went with Netflix despite earlier talks.

The Bid Details and Why Paramount Thinks It Wins

Paramount offers $30 per share in all-cash for every Warner Bros. Discovery share, totaling $108.4 billion for the full company (Reuters). Netflix’s deal, by contrast, values Warner’s studios and HBO at $82.7 billion through $27.75 per share—$23.25 cash plus $4.50 in stock (Business Insider)—and leaves out Warner’s cable networks like CNN and TNT for a separate spinoff. Paramount claims this gives shareholders $17.6 billion to $18 billion more upfront cash, per statements to The Hollywood Reporter and CNN.

Ellison argues his all-cash deal closes faster with fewer regulatory headaches. Netflix buying HBO Max—the No. 3 streamer—while already No. 1 could draw antitrust fire, he told CNBC. Netflix pushes back, noting by Nielsen TV usage stats it holds just 8% of viewing time, close to Paramount’s 8.2%. Warner’s board will review and advise shareholders within 10 days.

Financing: $24 billion debt from Saudi Arabia’s Public Investment Fund, Qatar, Abu Dhabi, and Jared Kushner’s Affinity Partners. They waive board seats or votes. Larry Ellison chips in equity too.
Savings: Paramount eyes $6 billion in savings from overlapping operations, without touching creative teams.
Stock moves: Warner Bros. Discovery shares jumped 5% above $27; Paramount rose 7%; Netflix dropped over 3%.

What Viewers Could See If Paramount Wins

For fans, a Paramount-Warner merger promises a bigger streaming rival to Netflix and Disney. Ellison vows 30 exclusive theatrical movies a year (Deadline) to keep cinemas alive, calling a Netflix-Warner combo “the death of the theatrical movie business.” He’d blend Paramount+ with Max, boosting content spend and competition—good for more shows and films chasing viewers.

News watchers might get CBS News merged with CNN into a “trust business” service for middle America. But critics worry any mega-merger shrinks choices: fewer platforms mean less variety, higher prices, or bundled content you don’t want. Netflix insists its deal creates jobs and growth across Hollywood. If Warner picks Paramount, it pays Netflix a $2.8 billion breakup fee, possibly sparking a higher counteroffer and prolonged fight.

Ellison launched StrongerHollywood.com to sell the vision as pro-consumer and pro-competition. Shareholders—and regulators—decide next.