Paramount Launches $108 Billion Hostile Takeover Bid for Warner Bros. Discovery

Hollywood's Ultimate Power Play: Paramount's $108B Hostile Bid to Hijack Warner Bros. from Netflix's Grasp

Los Angeles, December 8, 2025 – Paramount Global announced a $108.4 billion all-cash hostile tender offer for Warner Bros. Discovery (WBD) on Monday, directly challenging the $83 billion merger agreement WBD reached with Netflix just three days earlier.

The unsolicited bid, valued at $30 per share, represents a 139% premium over WBD’s closing price of $12.54 on September 30, before merger speculation intensified. Paramount’s offer carries an enterprise value of $108.4 billion (including debt) and an equity value of $77.9 billion.

In a letter to WBD shareholders, Paramount Chairman David Ellison described the proposal as “superior” to Netflix’s pending transaction, citing its all-cash structure, higher valuation, and lower regulatory risk. The tender offer is scheduled to expire on January 8, 2026, unless extended.

Key Terms of Paramount’s Offer

• $30.00 per share in cash
• Full acquisition of Warner Bros. Discovery, including film and TV studios, HBO, Max, CNN, TNT, and other cable networks
• Commitment to release more than 30 theatrical films annually
• No financing contingency; commitments already secured

Paramount argues that Netflix’s $27.75-per-share cash-and-stock deal – announced December 5 and valued at $82.7 billion enterprise value excluding cable assets – faces significant antitrust hurdles and exposes shareholders to Netflix stock volatility.

Background of the Bidding War

Netflix emerged as the winner of a month-long auction process last week, outbidding Paramount after Ellison had progressively raised offers from the low-$20s to $30 per share. Sources familiar with the process said WBD’s board favored Netflix’s structure because it allowed the company to shed declining linear TV assets while securing a premium for its core entertainment business.

Paramount, which completed its own merger with Skydance Media earlier this year under Ellison’s leadership and backing from Oracle co-founder Larry Ellison, maintains that a full combination with WBD would create a more balanced media company capable of competing across theatrical, streaming, and linear television.

Regulatory and Political Dimensions

Analysts note that a Netflix-WBD merger would combine the two largest U.S. streaming services by subscriber count, likely triggering extended antitrust review by the Department of Justice and Federal Trade Commission. Paramount’s all-cash bid for the entire company, while still subject to scrutiny, is seen by some as facing a clearer – if not necessarily faster – path to approval.

The situation has already drawn political attention. President-elect Donald Trump publicly questioned the Netflix transaction last week, calling it “a problem” for market concentration and stating he would “be involved” in the review process.

Next Steps

Warner Bros. Discovery has ten business days to respond formally to the tender offer under SEC rules. The company’s board could adopt defensive measures, including a poison pill, or seek a higher bid from Netflix. Shareholders ultimately hold decisive power: if a majority tender their shares to Paramount, WBD’s board would face intense pressure to engage.

As of Monday afternoon, WBD shares were trading at $29.40, implying the market assigns a high probability to some form of transaction above Netflix’s original terms.

The outcome will shape the future structure of the U.S. entertainment industry, determining whether Hollywood’s century-old studio system remains under traditional media ownership or accelerates its migration into the hands of Big Tech.

Sam Smith