Paramount Skydance has launched a hostile takeover bid for Warner Bros. Discovery after losing its previous pursuit of Netflix. The company confirmed on Monday that it will go directly to Warner Bros. Discovery shareholders with an all-cash offer valued at US$30 per share. Paramount said the offer matches the proposal Warner Bros. Discovery rejected last week without any formal response from its board.
Ellison Moves To Reignite Negotiations
Paramount Skydance Chief Executive David Ellison told CNBC’s “Squawk on the Street” that the company plans to “finish what we started.” He said the move aims to give shareholders a direct choice between Paramount’s proposal and Netflix’s signed agreement. Ellison confirmed that the offer is supported by equity financing from the Ellison family and RedBird Capital. The plan also includes US$54 billion in debt commitments from Bank of America, Citi, and Apollo Global Management.
Ellison said Paramount “put the company in play” and now wants to complete the deal on behalf of its investors. Shares of Paramount rose about 5 per cent in pre-market trading on Monday, while Warner Bros. Discovery shares gained around 6 per cent. Netflix shares fell slightly during the same session.
Paramount Skydance Chief Executive David Ellison
Paramount Counters Netflix’s Us$72 Billion Deal
Netflix announced its agreement on Friday to purchase Warner Bros. Discovery’s studio and streaming assets for US$72 billion. Paramount’s offer seeks the acquisition of the entire Warner Bros. Discovery group, including its cable networks such as CNN and TNT Sports. Comcast was also reported to have submitted a bid for the same assets earlier this year.
Paramount executives emphasised that keeping Warner Bros. Discovery whole represents greater value for shareholders than a split sale. They believe that their offer delivers a stronger combination of strategic value and transaction certainty.
The Paramount Studios in Los Angeles
Cash Offer Exceeds Netflix Proposal
Ellison compared Paramount’s offer with Netflix’s mixed cash and stock proposal during his CNBC interview. “We’re sitting on Wall Street, where cash is still king,” he said. “We are offering shareholders US$17.6 billion more cash than the deal they currently have signed up with Netflix. and we believe when they see what it currently in our offer, then that’s what they’ll vote for.”
Paramount’s US$30 per share proposal represents an all-cash bid for the entire entity. Netflix’s offer of US$27.75 per share includes US$23.25 in cash and US$4.50 in stock. Netflix argues that a future spinoff of Warner Bros. Discovery’s cable assets, excluded from its deal, could yield additional value for shareholders. Paramount disputes that assumption and points to its bid’s simplicity and financial clarity.
Paramount’s offer vs Netflix’s offer
Shareholders Urged To Decide Directly
Ellison said Monday that Warner Bros. Discovery shareholders deserve the right to judge both offers firsthand. “WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” he said in a statement. Ellison added that the public proposal matches the same terms earlier presented privately to Warner Bros. Discovery’s board.
Paramount said its plan offers superior value, faster completion, and fewer regulatory risks. “We believe the WBD Board of Directors is pursuing an inferior proposal,” Ellison said. Paramount has repeatedly criticised the Netflix deal as complex and uncertain due to heightened antitrust scrutiny.
Warner Bros. Discovery Inc.’s share price saw a 6% jump
Regulatory Issues and Political Support
Ellison highlighted that Paramount’s smaller market footprint supports a smoother approval process. He argued that Netflix’s bid could raise regulatory challenges for combining two dominant streaming platforms. He noted that Netflix ranks first in streaming while HBO Max, part of Warner Bros. Discovery, ranks third.
“We’ve had great conversations with the President about this, but I don’t want to speak for him,” Ellison told CNBC. He credited a “positive relationship” with President Donald Trump, saying it strengthens confidence in regulatory discussions. “I’m incredibly grateful for the relationship that I have with the president,” he said. “and I also believe he believes in competition. and when you fundamentally look at the marketplace, allowing the No. 1 streaming service to combine with the No. 3 streaming service is anticompetitive.”
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Antitrust Concerns Surrounding Netflix’s Proposal
Antitrust authorities have already questioned Netflix’s plan. The Trump administration reportedly views the proposed merger with “heavy skepticism.” President Trump said Sunday that market share concerns could represent a significant “problem” for the transaction.
Netflix agreed to pay Warner Bros. Discovery a US$5.8 billion termination fee if regulators block the deal. Warner Bros. Discovery would owe US$2.8 billion if it cancels the current agreement to pursue another bidder.
Industry Implications Of The Deal
Ellison also addressed the cultural and creative impact of a potential Netflix-Warner merger. “It’s bad for the consumer, it’s bad for the creative community,” Ellison told CNBC. “We’re sitting here trying to save it.” He warned that combining Netflix with Warner Bros. could mark “the death of the theatrical movie business in Hollywood.”
Ellison maintained that Paramount’s integrated offer aligns with both creative goals and competitive standards. His argument appeals to industry figures worried about excessive concentration of streaming power. Paramount executives said their approach preserves diversity in production and distribution while reinforcing the theatrical model.
Next Steps In The Takeover Battle
Paramount’s decision to go hostile marks a rare escalation in modern entertainment mergers. The company’s initiative bypasses Warner Bros. Discovery’s management and goes straight to its investors. Analysts expect a vigorous public campaign to sway shareholder opinion in the coming weeks.
With Paramount’s all-cash proposal on the table, Warner Bros. Discovery investors now face a crucial choice between higher immediate value and longer-term streaming synergies. Market observers expect further statements from Warner Bros. Discovery as pressure builds around Netflix’s contested deal.
Ellison said Paramount remains fully committed to concluding the process. “We’re really here to finish what we started,” he said.
