Paramount Skydance made a hostile takeover bid for all of Warner Bros. on Monday. Discovery for $108.4 billion, with the all-cash offer coming just three days after Netflix. agreed to buy part of Warner Bros. in a deal valued at $82.7 billion.
“Shareholders of Warner Bros. Discovery deserve the opportunity to consider our superior all-cash offer to acquire their shares of the entire company,” said Paramount Skydance CEO David Ellison. said in the statement.
“Our public offering, which is subject to the same terms and conditions that we provided to the board of directors of Warner Bros. Discovery is privately held and provides superior value and a more reliable and faster path to completion,” he said.
Paramount Skydance is the parent company of CBS News.
The new proposal intensifies the battle over the future of Warner Bros. Discovery, which on Friday struck a deal with Netflix that will see the streaming giant acquire Warner's streaming and film assets. Warner Bros. The legendary film library includes classic films such as Casablanca and the Harry Potter series.
Paramount Skydance said its offer was a better deal for Warner shareholders because it included the entire Warner Bros. company. Discovery, including its cable television channels such as CNN, TBS, TNT and The Food Network. The deal would also have an easier path through the regulatory process than Netflix's proposal, Paramount said.
“Paramount is very confident that it can quickly obtain regulatory approval for its proposed offering as it enhances competition and is pro-consumer while creating a strong advocate for creative talent and consumer choice,” the company said in a statement.
Potential antitrust hurdle
Some Wall Street analysts believe the Netflix-Warner Bros. combination. could raise concerns among U.S. antitrust regulators due to the size of the streaming service and the potential for less competition in the media space.
“With Netflix positioned as the largest streaming platform, the company's acquisition of HBO Max services and customers raises red flags,” said Jeffrey May, managing editor of the Insights & Enrichment group at Wolters Kluwer Legal and Regulatory US, in an email.
May added: “Netflix and HBO Max are competing for subscribers. Their combination can be seen as a threat to competition and innovation.”
President Trump also made it clear that the Netflix-Warner Bros. deal. could face headwinds, saying on Sunday that the size of the combined company “could be an issue.” Mr. Trump also said he would be involved in any decision on whether the federal government should approve the deal.
Usha Haley, a Wichita State University professor who specializes in international business strategy, told The Associated Press that Paramount's ties to Mr. Trump are notable. Paramount CEO David Ellison is the son of Larry Ellison, who heads software maker Oracle Corp. and is an outspoken Trump supporter.
Mr. Trump “said he would be involved in the decision—we have to take his words at face value,” Haley said. “For him, it’s just more control over the media.”
Netflix declined to comment, and Warner Bros. Discovery did not immediately respond to a request for comment.
Warner Bros. stock Discovery jumped $1.65, or 6.3%, to $27.72 in early trading Monday, while shares of Paramount Skydance rose 78 cents, or 5.8%, to $14.14. Netflix shares fell 4.9% to $95.64.
Paramount Skydance's tender offer expires on January 8, 2026, unless extended.
Impact on Streaming
With over 300 million subscribers, Netflix is the world's largest streaming service. according to David R. King, professor of management at Florida State University.
Warner Bros. streaming platforms Discovery, including HBO Max and Discovery+, ranks fourth with 128 million subscribers, followed by Paramount+ in fifth place with 78 million customers, he added. Amazon Prime Video and Disney/Hulu come in second and third, respectively.
The prospect of greater media industry consolidation has prompted critics such as Sen. Elizabeth Warren, D-Mass., to oppose the Netflix-Warner Bros. deal. In a statement Friday, Warren said the combination would “create one massive media giant that controls nearly half the streaming market.”
Netflix will likely argue that other video platforms such as YouTube should be included in the streaming service's market share calculation. according to in The Guardian.
The bidding war follows Warner Bros.' June announcement. Discovery about what she's planning split into two businessesseparating cable networks from the streaming and studio businesses.
But in October the media conglomerate said that aroused interest from companies about buying all or part at once, with the help of the Wall Street Journal reporting that media and entertainment companies including Netflix, Paramount Skydance and Comcast have struck a deal.
Warner Bros. Shareholders Discovery “will have to choose between [Paramount Skydance's] a straight cash offer of $30 per share and a slightly lower and more complex Netflix offer with a spin-off of linear networks, both of which raise significant antitrust issues,” David O'Hara, managing director of research firm MKI Global Partners, said in an email.
