Paramount’s $108 Billion Hostile Bid Throws Netflix–Warner Bros Deal Into Turmoil

The high-stakes tug-of-war for Warner Bros Discovery (WBD) has erupted into one of the most dramatic takeover battles in modern media history. What began as Netflix’s seemingly solid path to acquiring WBD has now transformed into a ferocious corporate showdown after Paramount Skydance launched a $108.4 billion hostile bid, blindsiding the entertainment industry.

The new offer—a $30-per-share, all-cash proposal—marks a direct challenge to Netflix’s earlier $72 billion cash-and-stock deal, dramatically escalating the fight for control of one of Hollywood’s most iconic studios, home to HBO, DC Comics, and Warner Bros Pictures.

Paramount Claims Its Bid Is “Superior” — $18 Billion More in Cash

Paramount’s offer is positioned as the clear financial winner, delivering $18 billion more in cash to shareholders than Netflix’s bid. In a bold statement, Paramount CEO David Ellison argued the takeover would “create a stronger Hollywood” by preserving competition, supporting theaters, and keeping creative talent at the forefront.

The financing behind the bid, however, is a point of intense scrutiny. Paramount’s proposal is backed by:

• Larry Ellison and The Ellison Family

• RedBird Capital

• Jared Kushner’s Affinity Partners

• Saudi and Qatari sovereign wealth funds

• Abu Dhabi’s L’imad Holding

While this deep financial bench gives Paramount unprecedented capital strength, it also fuels political concerns and potential regulatory red flags.

Netflix Responds: “Hostile, Expected — And We’re Still Confident”

Netflix co-CEO Ted Sarandos shrugged off the hostile bid, calling it “entirely expected.” He was quick to criticize Paramount’s promised $6 billion in synergies, emphasizing that Netflix’s strategy involves creating jobs, not cutting them.

Yet the road ahead is far from straightforward. Netflix already faces bipartisan criticism, and former President Donald Trump has publicly questioned the company’s bid. Should WBD walk away from Netflix, the breakup fee alone would cost $2.8 billion, while Netflix could pay up to $5.8 billion if its acquisition collapses.

Regulators and Lawmakers Sound the Alarm

Paramount’s proposal has sparked immediate antitrust alarms. Senator Elizabeth Warren labeled the bid a “five-alarm antitrust fire,” arguing that a Paramount–WBD merger would put nearly all major TV content under one corporate umbrella—exceeding even Disney’s current reach.

Lawmakers from both political parties, along with Hollywood unions, worry that any mega-merger would harm workers, reduce competition, and raise consumer prices.

Netflix’s bid, meanwhile, is also expected to undergo intense regulatory review. The competition has now evolved into not only a boardroom battle but a political and legal marathon.

The Fight Is Far From Over

WBD’s board acknowledged receipt of Paramount’s bid but maintained its recommendation toward Netflix—at least for now. Sources indicate that concerns over Paramount’s financing and political ties are stalling momentum.

But industry analysts warn that the battle is only beginning. Paramount has already submitted six proposals over 12 weeks, none of which WBD seriously engaged with. Ellison has gone public, alleging a clear “bias” in favor of Netflix.

With Paramount’s stock jumping 7.3%, WBD rising 5.3%, and Netflix slipping 4%, markets are bracing for what could be the largest media merger tug-of-war in decades.