Paramount Skydance has ignited a dramatic new phase in Hollywood’s biggest takeover showdown of the decade, unveiling a hostile bid worth $108.4 billion for Warner Bros Discovery in a last‑minute push to outmanoeuvre Netflix and reshape the global entertainment landscape.
The offer, announced on Monday, marks Paramount’s most aggressive attempt yet to secure the studio behind HBO, Warner Bros Pictures and DC Comics, assets seen as crown jewels in the race to build the world’s dominant streaming and content powerhouse.
Netflix Deal Under Pressure as Paramount Ups the Stakes
Netflix, which emerged victorious last Friday after a prolonged bidding war involving Paramount and Comcast, locked in a $72 billion equity agreement for Warner Bros Discovery’s film, TV and streaming businesses. But Paramount’s new all-cash proposal has disrupted any sense of finality, reported Reuters.
Warner Bros Discovery’s board acknowledged the hostile bid but said it would not alter its existing recommendation favouring Netflix. Directors advised shareholders to “take no action at this time” as the rival proposal undergoes review.
Paramount insists its offer delivers far superior value, giving shareholders $18 billion more in cash than Netflix’s mix of cash and stock, while providing what it describes as a clearer path through antitrust scrutiny.
Kushner-Linked Funds and Middle Eastern Capitals Back the Bid
The bid’s financing has drawn intense scrutiny. The $30-per-share cash offer is supported by Affinity Partners, the investment firm run by Jared Kushner, President Donald Trump’s son‑in‑law, as well as sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi. The Ellison family, led by tech billionaire Larry Ellison, has also pledged major backing.
According to reports, Larry Ellison personally phoned President Trump shortly after the Netflix deal was announced, warning that the agreement could hurt competition.
Paramount CEO David Ellison positioned the offer as a win for consumers and the creative community: “We believe our offer will create a stronger Hollywood.”
Antitrust Storm Clouds Gather Over Both Bids
Even as Paramount argues its bid is more regulator‑friendly, analysts warn that merging two of the largest US television operators could trigger significant antitrust pushback. Democratic lawmakers have already flagged concerns, saying such a merger risks consolidating control of American television into too few hands.
A combined Paramount–Warner Bros entity would eclipse Disney’s market share, intensifying fears about shrinking competition in an industry already grappling with years of consolidation.
Yet Netflix faces its own regulatory hurdles. Its proposed acquisition, covering the Warner Bros studio, HBO, and streaming platforms, triggered bipartisan criticism and warnings from Hollywood unions about possible job cuts and higher consumer prices.
Ellison vs Netflix: The Battle Intensifies
Netflix co‑CEO Ted Sarandos, speaking at a UBS conference, said the hostile bid was “entirely expected,” but maintained confidence that Netflix could still close the deal. He also took a swipe at Paramount’s estimated $6 billion in synergies, hinting that such savings often translate to job cuts.
Paramount says its merger would protect theatrical releases and preserve Hollywood’s creative ecosystem. In a regulatory filing, it revealed that the Ellison family and private equity firm RedBird Capital would backstop $40.7 billion in equity capital.
Political, Financial and Strategic Stakes Collide
The political undertones are impossible to ignore. Senator Elizabeth Warren blasted the hostile bid as “a five‑alarm antitrust fire,” criticising the participation of Trump‑linked investors and raising concerns over national security implications.
President Trump, meanwhile, distanced himself from both bidders, saying he wanted merely “to do what’s right.” He has already questioned elements of the Netflix bid.
If Warner Bros accepts Paramount’s offer, it must pay Netflix a $2.8 billion breakup fee. Conversely, Netflix stands to lose $5.8 billion if its own deal collapses.
Share Prices React as Takeover Drama Deepens
Market reaction reflected the high stakes: Paramount shares rose 7.3 per cent, Warner Bros Discovery climbed 5.3 per cent, while Netflix stocks slipped 4 per cent.
In a letter to Warner Bros, Paramount accused the company of running a biased process that favoured Netflix from the outset, a charge that echoes reports suggesting Warner Bros executives considered the Netflix deal a “slam dunk.”
Paramount CEO David Ellison said on CNBC that there was an “inherent bias” during the bidding, signalling that the company intends to fight aggressively.
What Happens Next?
Both bids now face intensive regulatory scrutiny, political intervention and shareholder pressure. The outcome could redefine the future of Hollywood, determining everything from how films reach cinemas to the shape of global streaming competition.
