Paramount launches hostile takeover bid to stop Netflix-Warner Bros. merger

Paramount has initiated a $108.4 billion hostile bid to take control of Warner Bros. Discovery, directly challenging Netflix’s agreement to acquire key WBD assets. This move marks a major escalation in the ongoing efforts by several companies to take control of one of the world’s largest media portfolios.

Paramount’s move came after WBD’s board rejected earlier private offers. The company is offering $30 per share in cash to acquire all of WBD, including its studios, streaming platforms, global content libraries, and extensive linear television networks.

These networks include CNN, TNT, TBS, HGTV, Food Network, Discovery Channel, TLC, ID, Animal Planet, Cartoon Network, truTV, Magnolia Network, Travel Channel, Science Channel, Discovery Life, Destination America, OWN, and others within the company’s traditional TV group.

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Paramount raises concerns about WBD’s handling of the competing proposals

Paramount Skydance had previously submitted a takeover bid for Warner Bros. Discovery before a rival bid by Netflix won the auction part of a broader bidding war (Image via Cheng Xin/Getty Images)

Under Paramount’s proposal, the entire WBD organization would be integrated into a single corporate structure. The company argues that its all-cash offer offers greater certainty, avoids the complications of a spin-off, and simplifies regulatory review by keeping all assets together instead of splitting the company into separate parts.

As reported by Deadline, Paramount has also expressed concerns about WBD’s handling of the competing proposals. In a letter sent to WBD, the company stated that recent actions indicated a lack of a fair and open evaluation process.

“It has become increasingly clear, through media reporting and otherwise, that WBD appears to have abandoned the semblance and reality of a fair transaction process, thereby abdicating its duties to stockholders, and embarked on a myopic process with a predetermined outcome that favors a single bidder. We specifically request and expect this letter will be shared and discussed with the full board of directors of WBD,” Paramount said in a letter to WBD CEO David Zaslav.

Regulatory scrutiny is expected to play a key role in both potential transactions, as US federal agencies review market concentration, foreign investment, and the overall impact on the media sector. Several lawmakers, including Senator Elizabeth Warren, have called for a thorough review of any deal involving WBD.

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The Netflix–Warner Bros. deal

Netflix - Warner Bros. Discovery (Image via Getty)

Netflix previously announced an $82.7 billion deal to acquire WBD’s studios, HBO, HBO Max, and major franchises like Harry Potter, DC, and HBO’s original programming. Under that agreement, WBD shareholders would receive $23.25 in cash and $4.50 in Netflix stock per share.

The transaction excludes WBD’s cable networks, such as CNN, TNT, TBS, Discovery Channel, HGTV, and Cartoon Network, which would be placed into a new independent company.

Both companies have stated that the deal will expand Netflix’s global production capacity and streamline WBD’s corporate structure. Addressing Paramount’s hostile bid in New York, Netflix Co-CEO Ted Sarandos said the development was expected.

“Today’s move was entirely expected. We have a deal done, and we are incredibly happy with the deal. It’s great for shareholders, great for consumers,” Sarandos said, adding, “We’re super confident we’re going to get it across the line. So we’re set.”

Paramount's offer is set to expire on January 8, but it might be extended. WBD has confirmed it received the proposal and will share its assessment with shareholders.

Since both the Netflix–WBD agreement and Paramount’s takeover bid are under review, the future ownership of Warner Bros. Discovery remains uncertain, depending on shareholder decisions and regulatory outcomes.

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