Paramount counters Netflix with hostile bid for Warner Bros

Paramount on Monday launched a sweeping all-cash tender offer to acquire Warner Bros. Discovery (WBD), escalating a fierce battle with Netflix over control of one of Hollywood’s most iconic studios. The move challenges Netflix’s own hotly debated agreement announced last week, which stunned the entertainment world and triggered a wave of industry backlash.

The offer from Paramount, backed by billionaire Larry Ellison—an ally of former president Donald Trump—marks the company’s sixth bid since the bidding war began in September. Trump himself entered the fray on Sunday, warning that Netflix’s acquisition “could be a problem” because it would leave the streaming giant with an outsized share of the global film and television market. He added that he intended to be “involved” in the decision-making surrounding the deal.

David Ellison, chairman and CEO of Paramount, told CNBC that the company is “here to finish what we started,” emphasizing that this latest proposal far surpasses Netflix’s bid in both financial value and regulatory clarity. Paramount’s offer, which values WBD at $108.4 billion, represents a staggering 139-percent premium over WBD’s stock price in September when the bidding war first erupted. Unlike Netflix’s deal, Paramount’s proposal includes the purchase of major cable networks such as CNN, TNT, TBS and Discovery — assets that would join Paramount’s existing portfolio of CBS, MTV and Comedy Central.

By contrast, Netflix’s offer values the Warner Bros. studio at nearly $83 billion, a figure Paramount dismissed as “inferior and uncertain.” The company insisted that WBD shareholders “deserve an opportunity” to consider a superior, fully funded cash offer. Netflix declined to comment.

Analysts say the contest is far from settled. According to eMarketer’s Ross Benes, Netflix may appear to have the advantage, but the battle “will have twists and turns before the finish line,” raising the prospect of a prolonged corporate showdown.

Warner Bros. Discovery controls an enormous library of cultural touchstones—from classics like Casablanca and Citizen Kane to modern franchises including Harry Potter, Game of Thrones and Friends. Paramount argues that its takeover would face fewer antitrust barriers than Netflix’s, which it claims would give the streaming giant 43 percent of global streaming subscribers and trigger lengthy regulatory scrutiny worldwide.

Paramount says a combined company would generate more than $6 billion in cost savings, bolster theatrical releases and increase content investment — a crucial point for Hollywood creatives who fear Netflix’s diminished focus on movie theaters. The market reacted swiftly: WBD shares surged more than seven percent Monday, while Netflix’s stock dropped over two percent.