Paramount's $108 billion offer to force Netflix out turns the battle for Warner Bros. into a showdown

Paramount Skydance throws down $18B gauntlet in Netflix-WBD battle

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Not so fast: Just when Netflix thought it had Warner Bros. in the bag, Paramount Skydance CEO David Ellison stepped in and said, "Wait a minute." The legendary production company re-entered the fray with a bid $18 billion higher than Netflix's. Ellison says regulators are more likely to approve Paramount's acquisition than the streaming giant's.

Paramount Skydance has opened a new front in the fight for Warner Bros. Discovery, launching a hostile bid directly to shareholders. The move escalates a months-long contest for control of one of Hollywood's most valuable media portfolios. It comes just days after Netflix agreed to acquire the studio's film, television, and streaming businesses for $82.7 billion.

Paramount is offering shareholders an all-cash, $30-per-share deal that values Warner Bros. Discovery at $108.4 billion. The bid matches the proposal the WBD board rejected last week and is backed by equity from the Ellison family and RedBird Capital, along with $54 billion in debt financing from major banks. Early trading reflected the renewed battle: Paramount shares rose, Warner Bros. Discovery climbed, and Netflix fell.

Paramount Skydance CEO David Ellison said the company submitted multiple bids before WBD's formal sale process widened the field, signaling his frustration with how the auction unfolded and the board's silence after Paramount raised its latest offer.

"We're really here to finish what we started," Ellison told CNBC.

Netflix's deal covers WB's film and television studios, HBO/HBO Max, and related content and licensing businesses, and values each share at $27.75. The legacy linear networks – WBD's Global Networks assets – fall outside the deal and will spin off into a separate public company.

Paramount, by contrast, proposes a bid for the entire company, including those cable and broadcast businesses. Ellison argued that this distinction makes his proposal more attractive, adding that Paramount offers nearly $18 billion more cash than Netflix. He also suggested Paramount could outbid its current offer.

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A central point of contention is the fate of WBD's cable networks, which WBD plans to spin off as a separate company called Discovery Global in 2026. Ellison said he values the linear assets at $1 per share, a figure far below WBD's internal estimate. The gap underscores broader disagreements over how much traditional television businesses are worth in a streaming-first market.

Regulatory strategy has become another pressure point. Ellison said Paramount's smaller scale would allow for quicker approval and pointed to a favorable relationship with the Trump administration, which he characterized as supportive of expanded competition. He argued that letting the top streaming service absorb the No. 3 player would be anticompetitive and face heavier scrutiny than a merger between Paramount and WBD.

Netflix has already agreed to significant breakup penalties if regulators block its deal, while WBD faces its own fee if it opts for another buyer. Those terms add more weight to shareholder sentiment – the exact audience Ellison is now trying to sway as he attempts to redirect a sale that seemed settled only days ago.