Paramount Skydance launches $108bn hostile bid to take over Warner Bros

Paramount Skydance has made an aggressive new attempt to acquire Warner Bros. Discovery (WBD), moving directly to the company’s shareholders with an all-cash offer valued at $30 per share. The bid, priced at about $108.4 billion, marks the latest twist in the months-long contest for control of one of the world’s most influential entertainment groups.

The offer comes barely days after Netflix secured an agreement to buy WBD’s film studio and HBO Max streaming business, a deal that sidelined Paramount after several rounds of bidding. Paramount says its renewed push is aimed at acquiring the entire company, including WBD’s TV networks, which Netflix is not seeking to buy.

Paramount Skydance CEO David Ellison said the company is prepared to pursue the takeover even without the consent of WBD’s leadership, describing the move as an effort to “finish what we started” in the battle for the media giant.

Financing, foreign partners, and the regulatory landscape

Paramount said the proposal is fully backed by equity from the Ellison family, RedBird Capital, and several Middle Eastern investment partners. Additional debt commitments totalling $54 billion have been secured from Bank of America, Citi, and Apollo Global Management.

The investment group includes Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company, the Qatar Investment Authority, and Affinity Partners, a fund linked to Jared Kushner. Paramount noted that these partners will not receive governance rights, no board seats, no voting power, an arrangement designed to keep the deal outside the jurisdiction of the Committee on Foreign Investment in the U.S.

Ellison argues that Paramount’s smaller size, combined with what he described as a “friendlier regulatory environment,” gives the company an advantage over Netflix. He insisted that merging the leading and third-largest streaming platforms would attract tougher antitrust scrutiny.

WBD shareholders caught between two offers

Netflix’s offer, worth $27.75 per share, includes cash and stock and would leave WBD’s cable networks, such as CNN and TNT Sports, to be spun off into a new publicly traded entity in 2026. Paramount, however, believes the networks remain valuable and should stay within a unified company.

Ellison said his team places a $1-per-share value on those assets, while WBD executives privately estimate them closer to $3 per share. He also told investors the current Paramount bid is not necessarily the final one, signalling room for an even higher offer.

Netflix To Acquire Warner Bros. Discovery In Landmark $80bn Deal

Trading activity reflected the market’s uncertainty: Paramount shares rose 9%, WBD gained about 4%, while Netflix dipped 3%.

Rival CEOs offer different visions for the future

Netflix leaders defended their acquisition plan at an industry event on Monday, arguing that the combination would benefit both consumers and the broader media sector. Co-CEO Ted Sarandos dismissed Paramount’s promise of “synergies,” suggesting that such efficiencies typically mean job cuts, something Netflix says it intends to avoid.

Warner Bros. Discovery would face steep penalties if either deal collapses. Netflix must pay $5.8 billion if regulators block the agreement, while WBD would owe $2.8 billion if it abandons Netflix’s offer to pursue another buyer.

For now, the drama continues as both companies try to convince shareholders and regulators that their vision is the better path for one of Hollywood’s most storied brands.