Paramount's Bold Bid to Acquire Warner Bros Discovery

Tue Dec 09 2025 11:24:54 GMT+0200 (Eastern European Standard Time)

Paramount Skydance aims to outbid Netflix for Warner Bros Discovery, offering shareholders a lucrative deal amid intense competition in the media landscape.

Paramount Skydance has made a direct offer to purchase Warner Bros Discovery, proposing $30 per share to attract shareholders. This comes as a counter to Netflix's bid for the media giant's studio and streaming services. Paramount claims its proposal is more favorable, citing regulatory approval advantages and an overall company value of $108.4 billion. With competition concerns looming, analysts debate the implications of both bids on the media landscape, while the involvement of Donald Trump raises additional questions about the approval process.

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 (£22.50) 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 said there could be a problem with Netflix's purchase, pointing to competition concerns given the size of the companies.

Paramount is a smaller player than Netflix that is known for brands such as CBS News, Nickelodeon, and Mission Impossible.

It started submitting offers a few months ago, eventually prompting Warner Bros, owner of HBO and classics from Looney Tunes to Harry Potter, to formally open a bidding process.

Wall Street analysts have long said they believe a Paramount-Warner Bros combination makes sense, as it would give the company the scale to compete against rivals such as Netflix and Disney.

Warner Bros declared Netflix the winner of the auction on Friday, announcing a deal that valued its studio and streaming networks, including HBO, at about $83bn (£62.3bn), including its debt.

Paramount's offer values the entire company at $108.4 billion, which it claims is a better deal. Trump's son-in-law, Jared Kushner, is among the financial partners Paramount is working with as part of the deal.

Netflix executives expressed confidence in their plans, dismissing Paramount's attempt as entirely expected. Warner Bros has stated it will review Paramount's offer but is currently not changing its recommendation and will respond within 10 business days.

Both takeovers are expected to face scrutiny from competition regulators in the US and Europe. Analysts say Netflix's plan would raise concerns about dominance in streaming, while Paramount's proposal would prompt reviews regarding impacts on advertisers and local television distributors.

Paramount's plans have been closely watched due to the potential impact on the news business, particularly regarding its ties to Trump. Trump has signaled he expects to be involved in the approval process but has not committed to a viewpoint on the utility of either proposal.

Mr Ellison contends that Paramount needs this deal more than Netflix, asserting that the Warner Bros assets are a mere nice to have for the streaming giant. He has criticized the merger's effects on Hollywood, labeling Netflix's proposal as detrimental.

Shares in Warner Bros rose more than 4% on Monday while Paramount shares jumped 9%. In contrast, shares in Netflix dropped over 3%.