Paramount Skydance made a $108.4 billion hostile takeover offer for all of Warner Bros. Discovery on Monday, just three days after Netflix agreed to acquire part of the company in an $82.7 billion deal.
Paramount Skydance CEO David Ellison said the all-cash offer gives Warner Bros.. Discovery shareholders a chance to consider a superior and quicker path to completing the transaction. “Our public offer, which matches terms we previously offered privately, provides more value,” Ellison said.
The offer includes Warner’s cable channels, such as CNN, TBS, TNT, and The Food Network, and absorbs the company’s $33 billion debt. The $30-per-share all-cash bid totals nearly $78 billion, exceeding Netflix’s bid when accounting for Warner’s debt.
The bid is backed by the Ellison family, investment firm RedBird Capital, and several outside financing partners, including Affinity Partners and Saudi Arabia’s Public Investment Fund, all of whom have waived governance rights in a combined firm.
Paramount said its offer faces fewer regulatory hurdles than Netflix’s deal. “We are confident in achieving rapid regulatory clearance, enhancing competition, and supporting creative talent and consumer choice,” the company stated.
Analysts have warned that the Netflix-Warner Bros. deal could trigger antitrust scrutiny because of Netflix’s size. Former President Trump also indicated the merger could face challenges and suggested he might be involved in the approval process. Paramount’s ties to Trump through the Ellisons were noted by experts as potentially influential.
Netflix co-CEOs Ted Sarandos and Greg Peters expressed confidence their deal would close, emphasizing U.S. job creation. Analysts caution, however, that political involvement could complicate Paramount Skydance’s bid.
Shares of Warner Bros. Discovery rose 6.3% to $27.72, Paramount Skydance shares gained 5.8% to $14.14, while Netflix fell 4.9% to $95.64. Paramount Skydance’s tender offer is set to expire Jan. 8, 2026, unless extended.
In the streaming market, Netflix leads with over 300 million subscribers, while Warner Bros. Discovery ranks fourth with 128 million, and Paramount+ is fifth with 78 million. Critics, including Sen. Elizabeth Warren, argue the Netflix-Warner Bros. combination could create a media giant controlling nearly half the streaming market.
Warner Bros. Discovery previously announced plans to split its cable and streaming businesses, but interest from companies including Netflix, Paramount Skydance, and Comcast has prompted a bidding war. Shareholders must now choose between Paramount’s all-cash offer and Netflix’s partial acquisition deal, both carrying potential antitrust concerns.
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