Paramount Skydance Corporation significantly escalated their pursuit of Warner Bros Discovery on Monday, unveiling a hostile takeover proposal valued at $108.4 billion, in a high-stakes bid to overtake Netflix for the coveted media and streaming assets.
This move injects renewed uncertainty into a fiercely contested acquisition battle that has already drawn in some of the industry’s largest players.
Netflix on Friday appeared to have clinched the upper hand, emerging victorious in a protracted bidding contest that also involved Paramount and Comcast. The streaming leader had secured a $72 billion equity bid for Warner Bros Discovery’s television, film studios, and streaming businesses, giving a total enterprise value of $82.7 billion.
However, Paramount’s latest bid, worth $30 per share for the entire company—compared to Netflix’s $27.75 per share for Warner Bros and HBO—signals the showdown for Warner Bros and its flagship properties, including HBO and DC Comics, is far from resolved.
The offer from Netflix is underpinned by a $5.8 billion break-up fee and, according to the source, faces significant regulatory scrutiny.
Over the weekend, President Donald Trump expressed concerns over the prospective deal, questioning its implications during remarks at the Kennedy Center. The proposed transaction has already provoked backlash from both sides of the political aisle as well as Hollywood unions, citing the risks of potential workforce reductions and rising costs for consumers.
Netflix maintains that the eventual divestiture of Warner Bros Discovery’s cable holdings could unlock additional value, estimating several dollars per share over and above its current deal, which it argues could outweigh the premium in Paramount’s current bid.
President Trump cautioned on Sunday that the merged entity’s expanded market presence “could be a problem,” and stated his intention to remain involved in the regulatory review of the deal.
