Paramount Skydance has launched a hostile takeover offer 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 Parsmount’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.
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.
Netflix deal backlash
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.
Shares of WBD were up in pre-market trading, while Netflix shares saw modest fluctuations amid the renewed competition.