The battle for control of Warner Bros Discovery has intensified dramatically after Paramount Skydance (PSKY.O) submitted a surprise hostile bid worth $108.4 billion, an aggressive move that threatens to derail Netflix’s earlier winning offer and reshape the future of global media consolidation. The proposal, revealed on Monday, has escalated what had already been one of the most closely watched corporate showdowns in Hollywood and Silicon Valley.
Just days earlier, Netflix secured what appeared to be a decisive victory in a prolonged bidding war involving Paramount and Comcast, emerging with a $72 billion equity agreement to acquire Warner Bros Discovery’s film studios, TV properties, HBO, and the HBO Max streaming platform. Netflix’s win was seen as a landmark moment that would further solidify its powerful grip on global entertainment.
But Paramount’s counterattack has now thrown the process into uncertainty, raising legal, political, regulatory, and financial questions that could prolong the acquisition battle for months.
Warner Bros Board Cautious but Agree to Review Bid
Following the announcement, the Warner Bros Discovery board of directors issued a statement acknowledging Paramount’s unsolicited offer. However, the board emphasized that it is not modifying its previous recommendation in favor of Netflix and urged stakeholders to “take no action at this time” regarding the Paramount Skydance proposal.
The stance reflects internal concerns about the financing structure behind Paramount’s bid. According to sources familiar with internal discussions, the board is wary of how Paramount intends to fund such a massive takeover—concerns that have only deepened as more details emerge about its financial backers.
Kushner, Middle Eastern Funds Back Paramount’s Record-Breaking Offer
Paramount’s $30-per-share bid significantly outpaces Netflix’s offer, giving shareholders $18 billion more in cash and promising a quicker and cleaner path to regulatory clearance. The offer is backed by a complex web of financiers, including:
- Affinity Partners, an investment firm run by Jared Kushner, the son-in-law of U.S. President Donald Trump
- The Saudi and Qatari sovereign wealth funds
- L’imad Holding Co, owned by the Abu Dhabi government
- A major backstop commitment from the Ellison family, led by tech billionaire Larry Ellison
Larry Ellison, the world’s second-richest man and father of Paramount CEO David Ellison, also maintains close ties to the White House—a factor that some analysts believe Paramount sees as a strategic advantage in a politically charged regulatory climate.
In a regulatory filing, Paramount also revealed that the Ellison family and RedBird Capital have agreed to support $40.7 billion in equity capital to underpin the takeover.
Paramount Argues Its Offer Is Better for Hollywood and Consumers
In its public messaging, Paramount insists that its proposal is clearly superior—not only in financial terms but also in cultural and competitive impact. CEO David Ellison said the merger would “create a stronger Hollywood,” promising sustained investment in talent, film production, and theatrical releases.
Unlike Netflix’s bid, which focuses on acquiring the Warner Bros film studios, HBO, and HBO Max, Paramount is seeking the entire Warner Bros Discovery portfolio, including cable networks such as CNN, TNT, and Discovery Channel.
This expanded scope, Paramount argues, would streamline operations, minimize fragmentation across the U.S. TV ecosystem, and build a more competitive counterweight to Disney, Amazon, and Netflix.
Regulatory Risks Loom for Both Bidders
Analysts, however, caution that Paramount’s offer creates its own regulatory pitfalls. A combined Paramount–Warner Bros entity would control a vast portion of American cable television, prompting fears of excessive market concentration. Last month, several Democratic senators warned that such a merger could result in “one company controlling almost everything Americans watch on TV.”
If completed, the combined company would surpass Disney in total market share—raising antitrust concerns already prevalent in an industry rocked by layoffs, consolidation, and shrinking linear TV revenues.
Netflix’s deal, meanwhile, carries a $5.8 billion break-up fee and faces its own hurdles. Over the weekend, President Trump publicly questioned Netflix’s bid, adding a political element to an already complicated regulatory process.
Hollywood unions and bipartisan lawmakers have also criticized Netflix’s plan, raising alarms about potential job cuts and increased consumer subscription costs.
Paramount Stock Jumps as Wall Street Reacts
News of the hostile bid sent shockwaves across U.S. financial markets:
- Paramount shares surged 8%
- Warner Bros Discovery climbed 3%
- Netflix fell 4.7% as investors anticipated a prolonged and costly bidding battle
Comcast, once a serious contender, has effectively withdrawn. Company president Mike Cavanagh said Comcast “was not interested in taking its balance sheet to any stressful level” to acquire Warner Bros.
Behind-the-Scenes Tensions Surface
The takeover drama has exposed deep tensions between the companies. Paramount claims it submitted six proposals over the last 12 weeks, yet Warner Bros leadership allegedly “never engaged meaningfully.”
Reports suggest Warner Bros executives privately referred to the Netflix deal as a “slam dunk,” while dismissing Paramount’s offer as too complicated and politically entangled.
Paramount has responded by accusing Warner Bros of abandoning a fair process. In a letter to the board, Paramount argued that shareholders deserve a transparent evaluation, not a predetermined outcome.
CEO David Ellison added that there is an “inherent bias” in how Warner Bros has handled the competing bids—a claim that could intensify scrutiny if the matter escalates to courts or regulatory agencies.
Trump’s Influence and Industry Politics
The political dimension cannot be ignored. Bloomberg earlier reported that President Trump met with Netflix co-CEO Ted Sarandos in November, advising that Warner Bros should “sell to the highest bidder.”
Ellison acknowledged “great conversations” with Trump on CNBC but declined to specify their content. Meanwhile, Netflix maintains it is “highly confident” in its regulatory strategy and insists that its offer would deliver value to consumers, talent, and shareholders.
The Battle Is Far From Over
Industry experts expect the acquisition battle to drag on. Ross Benes, senior analyst at eMarketer, noted: “Paramount will appeal to shareholders, regulators, and politicians to try to stymie Netflix. The battle could become prolonged.”
With streaming competition intensifying and Hollywood still recovering from strikes, declining TV revenues, and rising production costs, the outcome of this fight could redefine the balance of power in global entertainment.
What remains clear is that Warner Bros Discovery—home to HBO, CNN, DC Comics, and some of the world’s most valuable storytelling assets—now sits at the center of one of the biggest media warfronts in history.
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