Paramount bids $108.4 billion to buy Warner Bros. Discovery
Paramount has launched a hostile $108.4 billion bid to acquire Warner Bros. Discovery, intensifying the battle over the HBO and DC Comics properties.
Paramount Skydance on Monday launched a hostile bid worth $108.4 billion for Warner Bros. Discovery in a last-ditch effort to create a media powerhouse that would surpass Netflix and challenge the streaming giant’s dominance.
Netflix won a week-long bidding war with Paramount and Comcast on Friday, securing a $72 billion stock deal for Warner Bros. Discovery’s television, film studio and streaming assets. But Paramount’s latest move means that the partnership with Warner Bros. and its prized HBO and DC Comics properties won’t be concluded any time soon.
Netflix’s proposal would have come with a $5.8 billion penalty and potentially faced increased antitrust scrutiny. President Donald Trump questioned the proposal over the weekend. The bid has already drawn harsh criticism from bipartisan lawmakers and Hollywood unions over concerns it could lead to job cuts and higher prices for consumers.
The twists and turns of Warner Bros.’ Discovery story
But Paramount’s bid could also face its own level of scrutiny. The Paramount-Warner Bros. merger would strengthen the company’s dominant position in the studio business, but some fear it could lead to job losses as the industry rapidly consolidates.
Reuters previously reported, citing sources familiar with the matter, that Paramount had raised its offer for the entire company to $30 a share on Thursday, but Warner Bros.’ board had concerns about raising the money.
How will Hollywood change if Netflix buys Warner Bros.
Netflix has announced that it will acquire Warner Bros., the legendary Hollywood studio that includes HBO and HBO Max, in a deal worth $72 billion.
“Warner Bros.’ Discovery deal isn’t over yet,” said Ross Venez, senior analyst at eMarketer. “Netflix is in the driver’s seat, but there will be twists and turns to get there. Paramount will likely appeal to shareholders, regulators and politicians to try to block Netflix. It could be a long battle.”
The company sent a letter to Warner Bros. questioning the sale process, claiming that the company had waived a fair bidding process and decided Netflix was the winner.
This was followed by reports that Warner Bros. executives spoke negatively about Paramount’s offer, calling the Netflix deal a “slam dunk.”
Paramount CEO hints at ‘bias against our company’
Paramount CEO David Ellison said in an interview with CNBC on Monday that the bid had “inherent bias” against the company. “We will be the largest investor in this deal, and the reason we are literally sitting here today is because we are fighting for our shareholders, and we are also fighting for the shareholders of Warner Bros. Discovery,” Ellison said in an interview with CNBC.
Some analysts and industry experts believe Paramount is the best candidate to buy Warner Bros. Discovery, given Ellison’s deep pockets and the backing of his father, Oracle co-founder and second-richest man Larry Ellison, who has close ties to the Trump administration.
Paramount has made multiple offers since September, seeking to create an entertainment powerhouse that could compete with tech giants like Netflix and Apple, which has expanded into media but faced rejection.
Although Paramount remains one of Hollywood’s major studios, its box office performance has been spotty, with occasional franchise wins offset by periods in which it trailed Disney, Universal, and Warner Brothers in U.S. market share.
Bloomberg News reported that President Trump met with Netflix co-CEO Ted Sarandos in mid-November and told Warner Bros. executives they should sell to the highest bidder.
Morningstar analysts said the combined company would have significant overlap and combined streaming revenue would decline unless Netflix doubles its price or operates a separate platform.
Sarandos sought to allay antitrust concerns, saying the deal would increase value for consumers, shareholders and talent, and said Netflix was “very confident” in the regulatory process.
Analysts said Netflix’s motivation is to secure exclusive, long-term control over premium IP and reduce its reliance on outside studios as it expands into gaming, live entertainment and the broader consumer ecosystem.
Access to WBD’s vast IP treasure trove would immediately give Netflix credibility, audience reach and merchandising potential for its gaming ambitions, an area where Netflix is still building original content and brand recognition.
