Paramount has dramatically escalated the battle for Warner Bros Discovery, launching a rival $108.4 billion takeover offer in a direct challenge to the planned acquisition by streaming giant Netflix, according to bbc.com.
The bid from Paramount Skydance, which is backed by the billionaire Ellison family, is a direct offer to Warner Bros shareholders, proposing $30 per share to acquire the entire company, including traditional television networks such as HBO and CNN.
This move comes just days after Warner Bros declared Netflix the winner of an auction on Friday, announcing a deal that valued its studio and streaming networks at about $83 billion, including debt.
Paramount has positioned its proposal as a “superior alternative,” arguing it offers shareholders more cash upfront and a better chance of winning approval from competition regulators.
Netflix’s successful bid focused on acquiring Warner Bros’ studio and streaming assets, including HBO (home to hits like Sex and the City), after a planned spin-off of other assets, such as CNN, into a separate independent company. Netflix, the world’s largest streaming service with over 300 million subscribers, expressed confidence in its deal, with executives on Monday dismissing Paramount’s move as “entirely expected.”
However, Paramount’s plan seeks to buy the entire company outright, valuing it significantly higher. Paramount, known for brands such as CBS News, Nickelodeon and the Mission Impossible films, believes a combined entity would gain the necessary scale to compete against rivals like Netflix and Disney.
Both takeover plans are expected to face intense scrutiny from regulators in the US and Europe, but Paramount’s bid adds a layer of political intrigue.
President Donald Trump has already voiced potential concerns about the Netflix purchase, citing competition worries given the size of the combined companies.
The Ellison family’s strong ties to Mr Trump, including Republican megadonor Larry Ellison, have long been viewed by analysts as a potential asset for Paramount in navigating the approval process. Furthermore, Paramount’s submitted paperwork revealed that Mr Trump’s son-in-law, Jared Kushner, is among the financial partners involved in the deal.
Over the weekend, Mr Trump said he expected to be involved in the approval decision, though he has offered mixed signals, praising Netflix bosses while later criticising Paramount over a 60 Minutes interview it aired.
Paramount chief executive David Ellison stated he had had “great conversations” with the President about the deal.
Warner Bros has confirmed it will review Paramount’s unsolicited offer but has indicated it is not currently altering its recommendation to shareholders regarding the Netflix deal. The company has stated it will formally respond to Paramount within 10 business days.
Analysts suggest the Paramount-Warner Bros combination would create a media giant powerful over sports and children’s networks, raising different concerns with regulators compared to the dominance-in-streaming fears posed by the Netflix deal.
Shares in Warner Bros and Paramount both jumped following the news, rising more than 4% and 9% respectively, while Netflix shares fell more than 3%.
