Paramount makes bold US$108.4bn play as fight for Warner Bros. escalates

Paramount Skydance has launched a hostile US$108.4 billion all-cash bid for Warner Bros., challenging Netflix's existing US$82.7 billion deal with the iconic film and television studio. 

In an announcement released on 8 December, Paramount said it has commenced an all-cash tender offer to acquire all outstanding shares of Warner Bros. Discovery (WBD) for US$30 per share. The bid, which includes WBD’s Global Networks segment, represents a 139% premium over WBD’s undisturbed stock price on 10 September.

Paramount’s offer positions itself as a “superior and more certain” alternative to Netflix’s US$27.75-per-share mix of cash and stock, which the company characterises as volatile, complex, and subject to lengthy regulatory scrutiny across multiple markets. According to Paramount, its all-cash proposal delivers US$18 billion more to WBD shareholders compared to the Netflix deal.

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David Ellison, chairman and CEO of Paramount, said the company is taking the offer directly to shareholders after submitting six proposals over 12 weeks without meaningful engagement from WBD's board. “WBD shareholders deserve the opportunity to consider our superior all-cash offer for the entire company,” he said, adding that the Netflix proposal leaves shareholders exposed to uncertain valuations and a protracted regulatory battle given Netflix’s global scale.

Paramount argues that the Netflix acquisition faces significant antitrust concerns. The company claims the combination would entrench Netflix’s dominance, particularly in regions where it already holds major subscription video on demand (SVOD) market share, creating potential risks of higher consumer prices, lower compensation for creators, and further pressure on theatrical exhibitors.

By contrast, Paramount says its takeover would “enhance competition” by forming a stronger rival to dominant streaming platforms, while preserving and expanding theatrical releases. The company emphasised that it intends to invest in the creative engines across both studios, maintain WBD’s current theatrical slate, and further grow output.

If successful, the merger would bring together Paramount+ and HBO Max, creating what the company describes as a more competitive direct-to-consumer platform. Paramount also highlighted the combined group’s technology partnership with Oracle, an expanded global sports rights portfolio spanning the NFL to Champions League, and a stronger suite of linear networks supported by CBS.

Paramount projects more than US$6 billion in cost synergies from the merger, on top of the US$3 billion in efficiencies it expects from its standalone transformation. Ellison said the combined company would be well-positioned to invest in content and innovation, backed by committed investors following the recent Skydance merger.

In a recent development, Reuters reported that US President Donald Trump weighed in on Netflix’s planned acquisition of Warner Bros., noting that the streaming giant already holds “a very large market share” and suggesting the deal “could be a problem.” He also indicated that he would be “involved in that decision,” casting further uncertainty over the transaction. He later told a White House roundtable that neither Netflix nor Paramount Skydance are close allies, and he would need to review their market share in the Warner Bros. bids.

Last week, Netflix announced an agreement to acquire Warner Bros. in an US$82.7 billion deal, bringing the century-old studio—home to Harry Potter, Game of Thrones, The Sopranos, The Big Bang Theory, the DC Universe, and The Wizard of Oz—under Netflix’s global streaming umbrella in one of the most significant consolidation moves in recent years.

The deal also raises questions about the future of HBO and HBO Max, following a turbulent 18 months in which Warner Bros. Discovery folded HBO Max into a broader Max strategy, scaled back global expansion, and cut content investment amid cost pressures.

Under the agreement, Netflix will acquire Warner Bros.’ film and television studios, as well as HBO and HBO Max, after Warner Bros. Discovery completes the previously announced separation of its Global Networks business in Q3 2026. The transaction was expected to close within 12 to 18 months.

The move represents the latest step in the streaming sector’s consolidation, following Amazon’s $8.5 billion acquisition of MGM in 2022, which gave the company access to the James Bond franchise and more than 4,000 film titles.

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