Paramount Launches Hostile $108 Billion Bid for Warner Bros After Netflix Deal

Hollywood woke up to another twist today. Paramount just threw down the gauntlet with a hostile $108 billion all-cash offer for Warner Bros Discovery, going straight to shareholders after getting rejected by the board.

David Ellison isn't backing down quietly. After losing Warner Bros to Netflix on Friday, Paramount announced this morning they're taking their $30-per-share offer directly to WBD shareholders in what's shaping up to be the entertainment industry's most dramatic corporate battle in years.

The move bypasses Warner Bros Discovery's board entirely. Bold? Absolutely. Desperate? Maybe. Ellison thinks shareholders deserve better than the Netflix deal they've been handed.

Why Paramount Thinks Their Offer Wins

Here's where things get interesting. Paramount's $30-per-share bid translates to about $108.4 billion when you factor in debt. Compare that to Netflix's Friday announcement of $27.75 per share (mix of cash and stock), valued at roughly $82.7 billion.

"We're sitting on Wall Street, where cash is still king," Ellison told CNBC earlier. "We are offering shareholders $17.6 billion more cash than the deal they currently have signed up with Netflix."

The financing? Ellison's got backing from his family (Larry Ellison is worth around $277 billion), RedBird Capital, and here's the controversial bit: sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, plus Jared Kushner's Affinity Partners.

Those Middle Eastern investors agreed to forgo any governance rights or board representation, which Paramount claims sidesteps CFIUS review. That's the Committee on Foreign Investment in the United States, if you're wondering.

What Netflix Gets (and What Paramount Wants)

Netflix's Friday deal only includes Warner Bros studio operations, HBO, and HBO Max. The cable networks like CNN, TNT, and Discovery? They're getting spun off into a separate public company called Discovery Global by mid-2026.

Paramount wants the whole thing. Every asset. All the cable networks. Complete package.

"Keeping Warner Bros Discovery whole was in the best interest of its shareholders," Paramount has argued repeatedly since September when they first made their play.

The Regulatory Minefield

Both deals face brutal regulatory scrutiny, though Paramount thinks they've got the easier path. President Trump threw shade at the Netflix deal yesterday, calling the combined market share a potential "problem" and confirming he'll be involved in approval.

"Allowing the No. 1 streaming service to combine with the No. 3 streaming service is anticompetitive," Ellison argued on CNBC. He's banking on his relationship with Trump and Paramount's smaller size to speed things through.

Netflix co-CEO Ted Sarandos apparently met with Trump at the White House in November, pitching the acquisition's benefits. Trump told him Warner Bros should sell to the highest bidder. Whether that translates to approval? Nobody knows yet.

The Trump administration has already expressed "heavy scepticism" about Netflix's proposal, according to senior officials who spoke to CNBC on Friday. Trump's involvement is unusual, frankly. Presidents don't typically wade into private merger negotiations this publicly.

Worth noting: Trump's got beef with Paramount over that $16 million settlement CBS paid him regarding a Kamala Harris interview. This morning, minutes after Paramount announced their hostile bid, Trump blasted the company on Truth Social about "60 Minutes." Timing feels deliberate.

What's Actually at Stake Here

Warner Bros Discovery owns some of entertainment's most valuable intellectual property. We're talking DC superheroes, Harry Potter, Lord of the Rings, Game of Thrones, Looney Tunes, and decades of film archives.

HBO Max currently sits behind Netflix and Disney+ in subscriber count. Adding Warner Bros would massively boost Netflix's content library and production capabilities.

For Paramount? This is about survival and relevance. The company's struggled to match rivals' franchise output recently. Landing Warner Bros would transform them into a legitimate Netflix competitor overnight.

The Timeline and Next Steps

Paramount claims they'll close within 12 months if approved. Netflix projected 12-18 months for their deal. Speed matters when regulators are circling.

Warner Bros Discovery's stock jumped 7% today to nearly $28 per share as traders smelled a bidding war. Paramount rose 4%. Netflix dropped more than 3%.

David Zaslav, WBD's CEO, told employees Friday the Netflix fit was "terrific" with "very little overlap." He downplayed regulatory hurdles, emphasising Warner Bros makes content whilst Netflix provides the platform and technology.

But now? Shareholders get to weigh two competing visions for Warner Bros' future. One keeps the company whole under Paramount. The other splits assets between Netflix and a new cable-focused entity.

Hollywood's Watching

Writers Guild of America and Cinema United have already opposed the Netflix deal, citing concerns about jobs and competition. Theatre owners worry Netflix will gut Warner Bros' theatrical distribution strategy.

Senator Elizabeth Warren called Netflix's proposal "an anti-monopoly nightmare" that would create excessive media concentration. Bipartisan resistance is building quickly.

Comcast apparently also bid for Warner Bros assets (they only want the studios and streaming, not the cable networks), though details remain scarce. The auction that wasn't supposed to be an auction has become a full-blown media circus.

Paramount's hostile tender offer formally kicked off today with SEC filings. They're betting shareholders will choose guaranteed cash over Netflix stock and regulatory uncertainty.

Ellison told Zaslav via text that $30 per share isn't their final offer. Translation: they'll go higher if needed. When your father has a $277 billion fortune backing you, that threat carries weight.

The bidding war everyone predicted when Warner Bros first explored selling itself earlier this year? It's here now. And it's going to get messier before anyone wins.