The streaming wars have just reached their most explosive chapter yet. After Netflix shocked the industry with its $82.7 billion deal to buy Warner Bros. Discovery (WBD), Paramount Global, through its Skydance partnership, has launched a hostile $108 billion bid to seize control of the legendary studio and all of its assets.
According to Variety, Paramount’s new proposal is a direct-to-shareholders offer that values WBD at $30 per share, representing a premium over Netflix’s mixed cash-and-stock arrangement. The bold move not only reignites Paramount’s earlier bid but also escalates the competition into a full-scale takeover battle that could reshape Hollywood’s power map.
“WBD shareholders deserve an opportunity to consider our superior all-cash offer,” said Larry Ellison, Oracle co-founder and one of Paramount’s financial backers. “Our proposal provides greater certainty and a quicker path to completion.”
With financial backing from some of the world’s most influential investors, Paramount’s move signals a turning point in the post-streaming consolidation era, where legacy studios, tech giants, and global investors are battling for control of entertainment’s future.
Introduction: From Hollywood Rivalry to Corporate Warfare
The saga began earlier this month when Netflix unexpectedly announced a $72 billion purchase agreement for Warner Bros.’ movie operations and its streaming division, HBO/HBO Max. The total enterprise value of that offer was $82.7 billion, excluding Warner’s cable networks like CNN, TNT, and TBS.
At the time, Paramount was widely believed to be the frontrunner in talks with Warner Bros. Discovery. But when Netflix secured the deal, Paramount’s leadership, led by Skydance CEO David Ellison, quickly regrouped and devised a new, more aggressive counterproposal.
This week’s announcement confirms that Paramount is no longer playing defence. It’s going after the entire Warner Bros. Discovery portfolio, not just the movie and streaming arms, in what analysts describe as a hostile takeover.
“Paramount isn’t just trying to buy Warner Bros.,” notes media analyst Carter Hughes. “They’re trying to change the balance of power across Hollywood.”
Overview
| Aspect | Details |
|---|---|
| Acquirer | Paramount Skydance |
| Target | Warner Bros. Discovery (WBD) |
| Bid Value | $108.4 billion (enterprise value) |
| Offer Type | All-cash tender offer ($30 per share) |
| Financing Sources | Larry Ellison, RedBird Capital, Saudi Arabia, Qatar, Abu Dhabi |
| Bank Commitments | $54 billion debt financing from Bank of America, Citi, Apollo Global Management |
| Previous Netflix Bid | $82.7 billion (mixed cash and equity; excluded TV assets) |
| Other Interested Parties | Comcast (unsuccessful) |
| Status | Hostile takeover attempt; direct appeal to shareholders |
Paramount’s Strategy: Why the All-Cash Offer Matters?
Paramount’s new $108 billion proposal stands apart for one major reason: certainty. Unlike Netflix’s hybrid deal involving stock and cash, Paramount’s offer is fully financed and all-cash, giving shareholders immediate value without the volatility of equity.
In a public statement, Paramount emphasized the simplicity and superiority of its deal:
“Our offer provides a more certain and quicker path to completion, while Netflix’s proposal exposes shareholders to regulatory uncertainty and market risks.”
Paramount’s plan includes assuming all of Warner Bros. Discovery’s debt, positioning it as a cleaner, more straightforward acquisition. The move also sidesteps the complex valuation Netflix applied by excluding Warner’s linear TV networks, which remain profitable but face industry headwinds.
The Players Behind Paramount’s Power Move
Paramount’s bid is backed by some of the most powerful financiers in the entertainment and technology world:
| Investor | Role in Bid | Details |
|---|---|---|
| Larry Ellison (Oracle Co-founder) | Major financial backer | Providing significant capital alongside his son David Ellison |
| David Ellison (CEO, Skydance Media) | Lead architect of acquisition | Spearheading Paramount’s strategy through Paramount Skydance merger |
| RedBird Capital Partners | Strategic investor | Supporting financing and long-term integration planning |
| Middle Eastern Investors | Additional capital | Backing from Saudi Arabia, Qatar, and Abu Dhabi sovereign funds |
| Banks (BofA, Citi, Apollo) | Debt financing | $54 billion in commitments to fund cash offer |
This impressive backing gives Paramount the firepower to challenge Netflix’s deep pockets — and the confidence to go straight to Warner Bros. shareholders.
Media investment expert Dr. Allison Greene explains:
“Paramount’s financing stack is extraordinary. The combination of Ellison money, sovereign wealth, and institutional lending makes this one of the most aggressive cash-backed bids we’ve ever seen in entertainment.”
Paramount’s Bid vs. Netflix’s Offer
| Feature | Paramount Bid | Netflix Offer |
|---|---|---|
| Total Value | $108.4 billion (enterprise value) | $82.7 billion (enterprise value) |
| Offer Type | All-cash | Cash and stock |
| Scope of Acquisition | Entire Warner Bros. Discovery (films, TV, networks, streaming) | Film & streaming units only (HBO/HBO Max, Warner Bros. Pictures) |
| Debt Assumption | Full | Partial |
| Regulatory Risk | Lower (traditional media merger) | Higher (tech-media merger scrutiny) |
| Financing Certainty | Fully financed | Partially financed |
Paramount’s pitch to shareholders is clear: their deal is bigger, faster, and safer.
The Regulatory and Competitive Battle Ahead
Should either acquisition move forward, the transaction would be among the largest in entertainment history, dwarfing Disney’s $71.3 billion purchase of 21st Century Fox in 2019.
However, both deals face potential scrutiny. Netflix’s proposal could raise antitrust concerns, as regulators may view the merger of two streaming giants as a potential monopoly in digital entertainment.
Paramount’s offer, on the other hand, may face fewer obstacles, since it merges two traditional media entities with complementary assets.
Regulatory attorney Michael Kim, specializing in media mergers, notes:
“Netflix would face a much steeper path to approval. Paramount’s structure aligns more closely with legacy media consolidation precedent, making it the cleaner play legally.”
The Stakes for Hollywood and the Streaming Landscape
The outcome of this battle could redefine Hollywood’s hierarchy. If Paramount’s bid succeeds, the company would gain control of Warner Bros. Pictures, HBO, CNN, TNT, TBS, and other major brands, creating a vertically integrated empire spanning film, streaming, and television.
Industry observers say this could position Paramount as a true rival to Disney, especially as Warner Bros.’ legendary franchises like Batman, Harry Potter, and Dune would join forces with Paramount’s own catalogue, including Mission: Impossible, Top Gun, and Star Trek.
Meanwhile, Netflix which has historically avoided major acquisitions would face a major setback in its push to control original IP pipelines.
“This is no longer about who makes the best shows,” says industry columnist Erik Lambert. “It’s about who owns the most powerful libraries — and who can monetise them fastest.”
Why Paramount Is Taking the Fight Public?
By taking its offer directly to WBD shareholders, Paramount has bypassed Warner’s board, effectively launching a hostile takeover. The move suggests that Warner’s leadership is leaning toward Netflix, despite Paramount’s larger bid.
Ellison’s public letter criticized the Warner Bros. board for pursuing what he called an “inferior proposal” that exposes shareholders to risk:
“The Netflix offer offers inferior and uncertain value, with a protracted regulatory clearance process and an unpredictable trading outcome,” Ellison wrote. “We’re giving shareholders the chance to act in their best interests.”
Financial experts view the public appeal as a pressure tactic designed to sway investor sentiment and force Warner’s board back to the negotiating table.
Why It Matters?
This unfolding corporate saga is about more than one company’s fate; it’s about the future of Hollywood consolidation.
If Paramount wins, it could mark a return to legacy studio dominance, where traditional entertainment conglomerates consolidate under mega-mergers. If Netflix prevails, it would cement tech companies as the new rulers of entertainment, owning both distribution and content creation.
Media futurist Dr. Hannah Pierce concludes:
“This isn’t just Paramount versus Netflix — it’s Old Hollywood versus New Hollywood. The winner could define what entertainment looks like for the next 20 years.”
FAQs
Paramount has offered $108.4 billion, an all-cash deal valuing WBD at $30 per share.
Netflix offered $82.7 billion in a mixed cash-and-stock deal, but it excludes Warner’s television networks.
WBD initially favoured Netflix’s proposal due to its speed and focus on digital assets, but Paramount’s latest offer is larger and all-inclusive.
The deal is backed by Larry Ellison, RedBird Capital, and sovereign funds from Saudi Arabia, Qatar, and Abu Dhabi, with $54 billion in debt support from major banks.
Yes. By taking the offer directly to shareholders, Paramount has launched a hostile takeover attempt.
WBD shareholders and regulators will review both offers, with potential bidding escalation expected in early 2026.
