In a dramatic twist worthy of Hollywood itself, Paramount-Skydance has launched a $108.4 billion hostile takeover bid for Warner Bros. Discovery (WBD) – just three days after Netflix appeared to clinch a victory in a months-long auction for the media giant.
The unsolicited, all-cash offer of $30 per share bypasses WBD’s board and goes directly to shareholders, escalating a high-stakes corporate clash that could reshape the entertainment industry and redefine the streaming wars.
Paramount–Skydance CEO David Ellison defended the move in an interview on CNBC, calling his offer a “superior alternative” that “delivers more value upfront” while preserving WBD’s long-term creative potential. Ellison blasted Netflix’s estimated $72–83 billion bid (including debt) as “anti-competitive” and a “horrible deal for Hollywood,” claiming it would hand too much control over content and distribution to a single tech giant.
Ellison’s takeover attempt is backed by sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. He argued that Netflix’s plan to spin off WBD’s linear TV assets – including CNN, TNT and HGTV – would leave them vulnerable in a rapidly shifting media landscape.
A company under pressure
The dramatic bidding war comes as WBD continues to grapple with $40 billion in debt from the 2022 WarnerMedia-Discovery merger. Subscriber losses at Max (formerly HBO Max) and a stock price stuck near $22 prompted a strategic review in October, triggering competing bids from Paramount, Netflix, and Comcast.
Netflix emerged as the frontrunner on December 5 with a deal valued at $27.75 per share, combining the Warner Bros. film and TV studios, HBO, and Max into its global streaming machine and spinning off cable networks into a separate public company. Paramount, however, accused WBD leadership of running a “tainted” process that favored Netflix.
Political pressure and regulatory risk
The takeover battle has already spilled into politics. President Donald Trump, fresh off his election win, said last week that the Netflix-WBD deal posed “a problem” due to antitrust concerns, given the merged company’s potential 40% share of US streaming subscribers.
Ellison said he has had “great conversations” with Trump, who reportedly told Netflix executives he expected the company to sell to the “highest bidder.” The deal faces scrutiny from the FTC and Department of Justice, with a formal review expected in 2026. Labor groups, including the Writers Guild of America, are already campaigning against a Netflix takeover.
Market reaction
Shares of WBD jumped 6% to $26.50, approaching Paramount’s offer price. Paramount stock climbed 5%, while Netflix fell 3% as analysts debated the fallout. Some, like Wedbush’s Dan Ives, called Paramount’s move a “game-changer.” Others warned that Paramount’s financing — an estimated $54 billion backed by banks including Bank of America and Apollo — could strain the company in an era of cord-cutting and AI-driven disruption.
Creative and cultural stakes
A Netflix-WBD merger would unite franchises like House of the Dragon, DC films, and Netflix originals under one platform, while raising fears of job cuts across WBD’s legacy cable networks. Paramount’s countervision proposes a consolidated media powerhouse combining Paramount+, HBO Max, CBS, and CNN – though critics worry that Ellison’s political connections could influence editorial direction.
“This isn’t just about dollars,” one studio executive told reporters. “It’s about who controls the stories we tell.”
Source: BBC