Paramount announced Monday that it will pursue a hostile takeover of Warner Bros. Discovery, offering $30 per share for the entire media conglomerate. The move comes after Warner Bros. Discovery’s board approved a $27.75‑per‑share deal with Netflix that will acquire the studio’s film and streaming assets but leave the cable channels—CNN, TNT and others—outside the sale.
A Cash‑Only Offer Backed by International Funds
Paramount’s bid is an all‑cash proposal, backed partially by funds from Saudi Arabia, Qatar, the United Arab Emirates, and Affinity Partners—an investment firm founded by Jared Kushner, Donald Trump’s son‑in‑law. The company also secured a $54 billion commitment from Bank of America, Citi and Apollo Global Management, bringing the total potential value of the deal to over $108 billion.
Paramount CEO David Ellison said the offer provides a “superior alternative to the Netflix transaction.” He warned that a Netflix deal could entangle Warner Bros. Discovery in a complex regulatory process and that the all‑cash, back‑stopped offer would give shareholders a faster, more certain path to completion.
> “WBD shareholders deserve an opportunity to consider our superior all‑cash offer for their shares in the entire company,” Ellison told a press release.
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> “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion.”
Ellison, who acquired Paramount earlier this year in an $8 billion deal that placed the studio’s assets under his Skydance umbrella, highlighted the scale of the combined company. He said that merging the No. 1 streamer (Netflix) with the No. 3 streamer (Paramount) would create a firm with “unprecedented market power, north of 400 million subscribers.” The next largest competitor, Disney, has just under 200 million.
Netflix’s Prior Acquisition and the Split Plan
Netflix’s last‑week agreement with Warner Bros. Discovery will acquire the studio’s film and streaming assets for $27.75 per share. The deal excludes Warner‑owned cable channels such as CNN and TNT, which will remain under a separate public company as Warner Bros. Discovery plans to split into two publicly traded entities—one for streaming and studio assets, the other for cable networks.
Shares of Warner Bros. Discovery rose about 6% at the opening of trading following the announcement, while Netflix shares fell 1.3% and Paramount shares advanced roughly 4%.
Trump’s Unexpected Role in the Deal
President Donald Trump entered the conversation after expressing concerns that a Netflix takeover could be an antitrust “problem.” He said he would “be involved” in the approval process for the deal. Trump also noted that Netflix co‑CEO Ted Sarandos had recently visited him in the Oval Office to discuss the transaction.
Ellison replied on CNBC that he is “incredibly grateful for the relations that I have with the president” and that Trump “believes in competition.” He added that they have had “great conversations” but that he would not speak for the president.
Shortly after Paramount’s bid announcement, Trump posted a critique of Paramount on Truth Social, accusing the company of allowing a “60 Minutes” interview with Rep. Marjorie Taylor Greene to air. Trump’s post referenced a $16 million settlement Paramount paid to resolve a lawsuit over an interview with Vice President Kamala Harris that aired before the 2024 election.
Market Reactions and Broader Implications
The hostile bid marks a significant escalation in a saga that has already drawn attention to the growing concentration of media ownership. Warner Bros. Discovery’s split plan and the competing offers from Netflix and Paramount illustrate the complex dynamics of studio consolidation, content spending, and regulatory scrutiny.
The acquisition battle also highlights the unusual involvement of a sitting president in a private corporate transaction—an event rarely seen in U.S. business history.
Key Takeaways
- Paramount offers $30 per share in an all‑cash hostile bid for Warner Bros. Discovery, backed by international funds and a $54 billion commitment from major banks.
- Netflix’s prior $27.75‑per‑share deal will acquire Warner’s studio and streaming assets but leave cable channels outside the sale.
- President Trump has expressed intent to participate in the approval process for the Netflix deal and criticized Paramount’s involvement in media content.
The showdown between Paramount and Netflix over Warner Bros. Discovery underscores the intensifying competition among streaming giants and the regulatory challenges facing the entertainment industry.
