Paramount’s $108.4b bid challenges Netflix for Warner Bros deal

Paramount Skydance has launched a hostile US$108.4 billion bid for Warner Bros Discovery, intensifying a takeover battle that previously saw Netflix secure a US$72 billion equity deal for the studio’s film, TV, and streaming assets.

Paramount’s offer, at US$30 per share, is backed by financing from Jared Kushner’s Affinity Partners, several Middle Eastern sovereign wealth funds, and the Ellison family, and proposes to acquire all of Warner Bros Discovery, including its cable television properties.

The Warner Bros Discovery board will review the Paramount offer, but has not changed its recommendation for shareholders regarding the Netflix deal.

Paramount argues its bid delivers US$18 billion more in cash to shareholders than Netflix’s offer.

The proposal is expected to face strong antitrust scrutiny, with some US lawmakers warning the merger would give one company significant control over American television content.

Shares of Paramount rose 7.3% on December 8, while Warner Bros Discovery gained 5.3%, and Netflix fell 4%.

The outcome of the acquisition remains uncertain as both sides appeal to shareholders and regulators.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Paramount’s $30-per-share all-cash offer for all of WBD would merge two major studios with their streaming platforms, plus news networks like CBS News with CNN 1 2. That mix includes Paramount+ (Paramount’s streaming service) and HBO Max (WBD’s streaming service) 1 2. The DOJ would review it under the Herfindahl-Hirschman Index (HHI), with theatrical (movie-theater distribution) HHI rising from 1,730 to about 2,087, a troubling jump 1 2.
Netflix’s $72 billion proposal leaves out linear networks (traditional TV channels) like CNN and TNT 3 1. It would close after WBD spins off its Global Networks arm, Discovery Global, into a separate public company now expected in Q3 2026 3 1. That unit includes traditional TV channels plus the Discovery+ service 3.
More than 75% of HBO Max subscribers already have Netflix, which casts the services as complements 4. A Paramount WBD tie-up could push sports rights and advertising to highly concentrated levels 2.
Reports tie the White House to support for Paramount, with a former DOJ Antitrust Division head involved in the talks 2. Analysts raise concerns across studios with streaming and linear TV, while Netflix’s plan excludes the linear piece 2 3.
Standalone prospects for these spun-off linear assets look shaky, which could create buyout openings at lower prices 5.
Comcast could go after HBO Max if Netflix later sells it, which would give Comcast a global streaming footprint in one move 5. Sky Italia might bid for Discovery Italy, WBD’s largest European linear operation 5.
If Paramount loses, it could try for TNT, but it would need to buy out BT’s stake and secure a new distribution deal with Sky 5.