Paramount Makes Hostile Bid to Buy Warner Bros. Discovery, Challenging Netflix Deal

A major corporate battle is underway in Hollywood. Paramount has moved forward with a hostile takeover attempt of Warner Bros. Discovery, going directly to shareholders with an all-cash offer that executives say tops the competing deal announced by Netflix just days earlier.

Warner Bros. Discovery’s board surprised the industry when it accepted Netflix’s proposal last week. The streaming giant’s offer includes a mix of cash and stock and does not include WBD cable assets such as CNN, which would be spun off separately. Netflix argues the full value of its deal will become clear once that spinoff takes place.

Paramount CEO David Ellison disagrees, and he is taking the case straight to investors. His company is offering $30 per share in cash for the entire company. Netflix’s bid amounts to $27.75 per share for Warner Bros. and HBO, combining $23.25 in cash and $4.50 in stock. Paramount says its all-cash proposal totals $108.4 billion, a figure that includes WBD cable channels and other assets not included in the Netflix agreement. Netflix values its offer at $82.7 billion excluding those channels.

Ellison argues that his plan not only provides more immediate value but is also more likely to receive regulatory approval. His pitch suggests a Netflix-WBD merger would combine two dominant streaming platforms and create antitrust concerns. Paramount points to industry measurements showing different rankings and competition levels within streaming to support its case.

As news of a potential bidding war spread, WBD shares surged to nearly $28. Paramount stock rose, while Netflix dipped as investors weighed the unfolding situation.

Ellison also appealed to Hollywood and consumers, saying Netflix’s plan could shift the balance too far toward streaming and threaten the traditional movie theater industry. He insists Paramount’s acquisition would protect the future of theatrical releases and preserve competition across entertainment platforms.

With high-stakes negotiations underway and both sides signaling willingness to escalate their offers, analysts expect more twists ahead as Warner Bros. Discovery shareholders evaluate their choices.

This remains a developing story and will be updated.

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