Paramount Intends to Outbid Netflix for Warner Bros Discovery

Mon Dec 08 2025 23:25:08 GMT+0200 (Eastern European Standard Time)

In a competitive move, Paramount Skydance has announced an offer to acquire Warner Bros Discovery, aiming to surpass Netflix's proposed acquisition plan. The bid presents a cash offer designed to appeal to shareholder interests amidst concerns over competition in the streaming industry.

Paramount Skydance has submitted a bid of $30 per share to acquire Warner Bros Discovery, positioning itself as a serious competitor to Netflix's offer. The announcement reveals Paramount's strategy to appeal to shareholders with a more lucrative proposal while addressing regulatory concerns regarding industry dominance. The stakes are high as both deals promise significant shifts in the media landscape, with Paramount emphasizing the benefits of its acquisition plan amid growing scrutiny over competition in the streaming world.

Paramount Skydance has made another offer to buy Warner Bros Discovery as it seeks to trump a rival plan from Netflix to buy the company's studio and streaming networks.

Paramount, which is backed by the billionaire Ellison family, said it was making a direct offer to shareholders of $30 per share to scoop up the whole of Warner Bros, including its traditional television networks.

It said its proposal was a superior alternative to Netflix's, delivering more cash upfront to shareholders and greater prospect of approval by regulators.

President Donald Trump has commented that there could be a problem with Netflix's purchase, pointing to competition concerns given the size of the companies.

The hostile bid from Paramount, a smaller player than Netflix which is known for brands such as CBS News, Nickelodeon, and Mission Impossible, is the latest twist in a saga that started a few months ago when Paramount started submitting offers to buy Warner Bros.

That eventually prompted Warner Bros, owner of HBO and classics from Looney Tunes to Harry Potter, to formally open a bidding process.

Warner Bros declared Netflix the winner of that auction on Friday, announcing a deal that valued its studio and streaming networks, including HBO, at about $83bn, including its debt.

It said the sale would proceed after a planned spin-off of other parts of Warner Brothers' business, including CNN, into an independent company.

Paramount's offer values the entire company at $108.4bn, which it claimed was a better deal.

In an interview on CNBC, Mr. Ellison also talked up the benefits of his plan for the media industry, arguing that Netflix's takeover of Warner Brothers Discovery would give one firm too much power over actors and other players in the industry.

He said it was a horrible deal for Hollywood, and that he had had great conversations with Trump regarding the deal, believing the president cared about competition.

Any takeover is expected to face scrutiny from competition regulators in the US and Europe.

Analysts noted that Netflix's plan would likely raise concerns about dominance in streaming, while Paramount's proposal would prompt a review of the impact on advertisers and local television distributors, considering the power of a combined company over sports and children's networks.

Paramount had been seen as a strong suitor for Warner Bros, particularly due to the relationship between David and Larry Ellison, who is a Republican megadonor, and Trump, which was expected to aid the process.

Shares in Warner Bros jumped more than 6% in opening trade on Monday, while Paramount shares were also up. Shares in Netflix, however, dropped more than 3%.

Analysts anticipate further twists in the takeover story, with more than 70% of HBO Max subscribers in the US also having Netflix subscriptions. Ben Barringer, head of technology research at Quilter Cheviot, stated that the deal made more sense for Paramount than for Netflix, calling it a nice-to-have for the streamer as Paramount seeks the scale necessary for the modern entertainment landscape.