Paramount Skydance has launched a hostile $108.4 billion bid for Warner Bros Discovery in a last-minute effort to outbid Netflix and reshape the power balance in Hollywood’s streaming and entertainment landscape. The offer escalates a weeks-long bidding contest in which Netflix had appeared to emerge victorious on Friday with a $72 billion agreement to acquire Warner Bros’ studios and streaming assets.
Warner Bros Discovery said its board would review the new offer but maintained its recommendation in favor of Netflix’s bid, telling shareholders to “take no action at this time.” Paramount’s proposal includes $30 per share in cash, backed by financing from Jared Kushner’s Affinity Partners, several Middle Eastern sovereign wealth funds, and the Ellison family. Larry Ellison — the world’s second-richest person and father of Paramount CEO David Ellison — has been personally involved and reportedly contacted U.S. President Donald Trump to raise concerns over Netflix’s market dominance.
Paramount argues its bid is superior, offering $18 billion more in cash than Netflix and a faster route to regulatory approval. The company says a combined Paramount–Warner Bros entity would strengthen Hollywood, benefit theaters, and boost competition for consumers. However, analysts note the takeover would likely face its own antitrust scrutiny as it would merge two major television operators and result in a studio larger than Disney. U.S. lawmakers, including Senator Elizabeth Warren, have already warned that such consolidation could pose national security and monopoly risks.
The high-stakes contest has become increasingly political. Trump said he intends to “do what’s right” regarding regulatory approval and expressed concerns about market concentration but noted that neither company is “a friend” of his. If Warner Bros accepts Paramount’s proposal, it must pay Netflix a $2.8 billion breakup fee; Netflix would owe $5.8 billion if its deal collapses.
Shares of Paramount rose 7.3% on Monday following news of the hostile bid, while Warner Bros Discovery climbed 5.3%. Netflix shares fell about 4%. Analysts expect the takeover battle to continue, with Paramount preparing to appeal to shareholders, regulators, and lawmakers after accusing Warner Bros of favoring Netflix throughout the process.
