Hollywood’s consolidation drama intensified on Monday as Paramount Skydance unveiled a $108.4 billion hostile bid for Warner Bros Discovery (WBD), escalating a takeover battle that began when Netflix made its own surprise offer last week. The competing proposals have set the stage for one of the biggest power shifts in the entertainment industry.
Paramount’s offer — a $30-per-share, all-cash tender — goes straight to WBD shareholders and is underpinned by a $41 billion equity financing package. The bid is supported by Affinity Partners, run by Jared Kushner, several Middle Eastern sovereign funds, and is backstopped by the Ellison family.
Unlike Netflix’s targeted deal, Paramount is seeking control of all of WBD’s assets, from cable channels to film and TV studios, HBO and the Max streaming service. Netflix’s $27.75-per-share cash-and-stock agreement covers only the studios and streaming platforms.
Paramount has kept the tender open for 20 business days, with WBD required to formally respond within 10. The company can also extend the offer window if needed. Should Paramount acquire 51% of shares, it would effectively take control without board approval.
Analysts say Netflix may be forced to counter. “If Paramount gains traction, a reaction wouldn’t be surprising,” noted Ric Prentiss of Raymond James. CEO David Ellison has already hinted that $30 per share may not be the final number.
Netflix publicly attempted to downplay the development. Co-CEO Ted Sarandos, speaking at the UBS Global Media and Communications Conference, said the move was “expected” and insisted the company is “incredibly happy” with its existing agreement with WBD.
For now, WBD is treading carefully. The company said its board will review Paramount’s proposal, but stressed it has not withdrawn support for the Netflix deal. Shareholders have been advised not to act immediately. Breaking the Netflix agreement at this stage would trigger a $2.8 billion termination fee.
Market Reaction Signals Rising Uncertainty
The market reflected the high stakes: WBD shares rose 4.4% on Monday, Paramount gained 9%, while Netflix fell 3.4%, marking its fourth straight session of decline.
