Paramount Skydance has launched a hostile $108.4 billion (£81.3 billion) takeover bid for Warner Bros Discovery, directly challenging the media giant's recently agreed $72 billion (£54 billion) deal with Netflix. The all-cash offer of $30 (£22.50) per share aims to bypass Warner Bros' board and targets shareholders directly, promising them $18 billion more than Netflix's proposal.
The move injects dramatic uncertainty into what seemed like a done deal. Netflix agreed last Friday to acquire Warner Bros' studio and streaming assets for $27.75 per share. Paramount's counter-offer, announced Monday, values the entire company including traditional television networks at $108.4 billion including debt.
Paramount chief executive David Ellison argued his company's bid offers "a more certain and quicker path to completion" than Netflix's proposal. He criticized Warner Bros' board for pursuing "an inferior proposal" and claimed the deal would be "in the best interests of the creative community, consumers and the movie theatre industry."
Trump signals regulatory scrutiny
US President Donald Trump weighed in Sunday, warning the Netflix acquisition "could be a problem" due to market concentration concerns. When asked whether he would allow Netflix to buy Warner Bros, he responded: "Well, that's the question."
Trump highlighted Netflix's dominant position, saying: "They have a very big market share, and when they have Warner Bros, you know, that share goes up a lot, so, I don't know. That's going to be for some economist to tell." He confirmed his personal involvement in the federal government's approval decision, adding: "I'll be involved in that decision, too. But they have a very big market share."
Despite his concerns, Trump praised Netflix as "a great company" and called chief executive Ted Sarandos "a fantastic man."
Industry opposition mounts
The Writers Guild of America West and Writers Guild of America East issued a joint statement Friday urging regulators to block the Netflix deal. The unions argued the acquisition would eliminate jobs, suppress wages, and worsen working conditions for entertainment professionals.
Paramount has pursued Warner Bros since September with multiple offers. The company launched a website, StrongerHollywood.com, to explain its proposal directly to shareholders. Paramount alleges Warner Bros management predetermined Netflix as the winner, describing the Netflix deal internally as a "slam dunk" while dismissing Paramount's approaches.
What's at stake
The Netflix-Warner Bros deal would combine two massive content libraries. Warner Bros controls franchises including Harry Potter, Batman, Superman, Game of Thrones, and The Matrix, plus streaming service HBO Max. Netflix brings Stranger Things, The Crown, Bridgerton, and The Witcher.
Both deals require approval from competition authorities and federal regulators. The Netflix agreement includes a $5.8 billion break-up fee if blocked.
Warner Bros must first complete a proposed spin-off of cable channels including CNN, TBS, and TNT Sports.
Warner Bros president and chief executive David Zaslav described the Netflix agreement as uniting "two of the greatest storytelling companies in the world," stating it would "ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come."
Note: This article was created with Artificial Intelligence (AI).
