Paramount has launched a hostile $108.4 billion bid for Warner Bros Discovery, escalating its battle with Netflix and attempting a final push to secure the media company.
Netflix had appeared to win the months-long competition on Friday with a $72 billion equity deal for Warner Bros’ TV, film and streaming units, but Paramount’s surprise bid has kept the contest alive, reports Reuters.
The Warner Bros Discovery board said Monday it will review Paramount’s proposal but is not altering its current recommendation in favor of Netflix, advising shareholders to hold off on any action regarding the new offer.
Paramount’s $30-per-share all-cash proposal includes financial backing from Jared Kushner’s investment firm Affinity Partners, several Middle Eastern sovereign wealth funds, and the Ellison family. Larry Ellison, father of Paramount CEO David Ellison and a close ally of the White House, reportedly phoned President Trump after the Netflix deal was announced, warning it could hurt industry competition.
Paramount argues its bid is superior, offering $18 billion more in cash than Netflix and fewer regulatory hurdles. The company says a merger would strengthen Hollywood, theaters, and consumers through increased competition. However, the deal would also create one of the largest media conglomerates ever, raising antitrust concerns that echo lawmakers’ warnings about excessive consolidation.
Netflix co-CEO Ted Sarandos said he expected the hostile bid and remained confident in closing their agreement, while criticizing Paramount’s promised “synergies” as likely job cuts—something Netflix says it aims to avoid.
If Warner Bros accepts Paramount’s bid, it must pay Netflix a $2.8 billion breakup fee, while Netflix would owe $5.8 billion if the deal collapses.
Both bidders face political scrutiny. Senator Elizabeth Warren called the Paramount offer a “five-alarm antitrust fire,” pointing to its ties to Trump associates.
Shares of Paramount and Warner Bros rose on the news, while Netflix stock declined. Analysts say the acquisition fight is far from over as Paramount continues pressing shareholders and regulators to block Netflix’s path.