The Paramount Warner takeover battle escalated sharply after Paramount issued a $108.4 billion hostile bid for Warner Bros. Discovery (WBD). The company decided to bypass WBD’s leadership and, instead, take the offer directly to shareholders. As a result, one of the largest media acquisition fights in recent history has entered a more aggressive phase.
Paramount’s all-cash offer values WBD at $30 per share and expires on January 8. Meanwhile, WBD’s board had already accepted Netflix’s $27.75-per-share bid last week. That earlier bid combined cash and stock for a total valuation of $82.7 billion. Because of this, Paramount now argues that shareholders deserve a chance to review what it calls a “clearly superior alternative.”
Why Paramount says its takeover is stronger
Paramount’s proposal differs fundamentally from Netflix’s approach. Netflix only wants the Streaming and Studios division of WBD, including HBO Max and the Warner Bros. film, TV and gaming catalog. However, Paramount aims to acquire the entire company, including the Global Networks cable business. This difference dramatically reshapes the strategic and regulatory implications of the Paramount Warner takeover.
WBD plans to split into two companies next year, and the Global Networks division would carry most of WBD’s $34.5 billion debt. Paramount says the WBD board relied on “an illusory valuation” that failed to reflect the division’s true financial condition. Moreover, Paramount criticized the sale process, insisting that WBD management favored Netflix from the start and did not engage meaningfully despite six separate proposals submitted over 12 weeks.
To strengthen its bid, Paramount assembled a massive financing structure:
- $40.7B from the Ellison family and RedBird Capital
- $54B in debt commitments from Bank of America, Citi and Apollo
Furthermore, several major sovereign wealth funds — including Saudi Arabia, Qatar and Abu Dhabi — joined the investor group, along with Jared Kushner’s Affinity Partners. Tencent helped fund an earlier Paramount bid but is not part of the hostile takeover attempt.
Netflix expresses confidence, but regulatory pressure rises
Netflix expected a counterattack and says it remains confident that its accepted deal will close. Still, regulatory and political concerns continue to intensify. President Donald Trump warned that the Netflix–WBD merger “has to go through a process” and noted that Netflix’s growing market share “could be a problem.” Combined, Netflix and HBO Max would hold roughly one-third of the US streaming market, which naturally attracts antitrust scrutiny.
Because of that, Paramount believes its smaller scale and friendlier relationship with the administration could shorten the review process. Netflix disagrees. During a recent event, co-CEO Ted Sarandos said Paramount’s new offer was “entirely expected” and stressed that Netflix is “incredibly happy with the deal” and prepared to defend it.
WBD reacts cautiously as competition intensifies
WBD acknowledged Paramount’s hostile bid and confirmed it will evaluate the offer. It expects to issue a recommendation to shareholders by December 19. For now, though, WBD reaffirmed its support for Netflix’s deal and urged shareholders “not to take any action” until its review is complete.
Meanwhile, industry analysts warn that union pressure, regulatory delays and potential counterbids could complicate the process for months. Additionally, Paramount executives believe Netflix’s deal will face heavier scrutiny because it only closes after WBD’s corporate split in late 2026. This timing, they argue, gives Paramount a tactical advantage.
What the Paramount Warner takeover means for Hollywood
Ultimately, the Paramount Warner takeover represents a pivotal moment for the entertainment industry. Streaming competition continues to intensify, and studios face mounting pressure to scale globally while cutting costs. Whoever prevails will control one of the world’s largest libraries of film, TV and gaming content.
Moreover, this fight highlights the growing tension between traditional media companies and tech-driven streaming giants. The outcome may determine not only who leads Hollywood in the next decade, but also how content is financed, distributed and regulated across the globe.
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