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Paramount Global, a multinational media and entertainment conglomerate whose executives are known for their close ties to U.S. President Donald Trump, has launched a $108.4 billion all-cash tender offer to acquire Warner Bros. Discovery, directly challenging Netflix’s previously announced $72 billion equity deal for the Hollywood giant.
The bid, spearheaded by Paramount CEO David Ellison, aims to outmaneuver Netflix and consolidate two major players in the entertainment industry. It is the sixth attempt by Paramount since bidding talks began in September and represents a 139% premium over Warner Bros. Discovery’s stock price at that time.
Following the development, Warner Bros. Discovery and Paramount shares rose more than 7% at their intraday highs, while Netflix fell over 4% at its intraday low on the New York Stock Exchange (NYSE).
Paramount’s bid encompasses not only Warner Bros.' film and television studios and streaming platforms but also its cable channels, including CNN, TBS, and Discovery.
In contrast, Netflix’s bid excludes the cable assets and focuses on studio operations, HBO, and the HBO Max streaming service.
The offer is being financed by a coalition of private and state-backed investors, including RedBird Capital, Saudi Arabia’s and Qatar’s sovereign wealth funds, the Abu Dhabi government’s L’imad Holding Co., and Affinity Partners, the private equity firm founded by Jared Kushner, son-in-law of Donald Trump. The Ellison family has committed $40.7 billion in equity backing.
Paramount’s connections to the Trump administration have drawn scrutiny, especially following reports that Oracle CEO Larry Ellison personally contacted Trump to express competition concerns about the Netflix deal.
President Trump said he intends to be involved in the regulatory approval process, an unusual move that departs from the customary independence of the Department of Justice and the Federal Trade Commission in merger reviews, citing antitrust concerns over Netflix’s bid and adding that he is "not friends" with either bidder but wants "to do what’s right."
Paramount argues that its proposal offers greater regulatory certainty, noting that Netflix’s acquisition would give the company a 43% share of global streaming subscriptions.
David Ellison emphasized that the deal would preserve theatrical releases and enhance consumer choice by encouraging healthy competition, generating an estimated $6 billion in cost savings.
Netflix, however, has pushed back against that narrative. Co-CEO Ted Sarandos called Paramount’s move "entirely expected" but questioned the promised cost efficiencies, implying they would lead to job cuts. "We’re not cutting jobs. We’re making jobs," he said during a UBS conference, defending Netflix’s content model and its impact on employment.
Warner Bros. Discovery board confirmed that it will review Paramount’s offer but has not withdrawn its recommendation in favor of Netflix. For Warner Bros. to switch suitors, it would have to pay Netflix a $2.8 billion breakup fee. Should Netflix’s deal fall through, it would be liable for a $5.8 billion penalty.
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