Paramount Skydance has reopened the battle for control of Warner Bros. Discovery after announcing a hostile bid valued at $108.4 billion, a move that sets the stage for what could become one of the biggest power struggles in global entertainment.
The media company made the offer on Monday in a last-ditch effort to outbid Netflix, which had secured a $72 billion equity deal for Warner Bros. Discovery studios and streaming assets just days earlier. With this new twist, the future of the house of HBO and DC Comics remains uncertain.
Despite acknowledging the new offer, Warner Bros. Discovery’s board of directors said it would review Paramount’s proposal, but maintained its previous recommendation in favor of Netflix. The board also urged shareholders not to take any action yet.
Paramount’s offer, valued at $30 per share, promises shareholders $18 billion more in cash than the Netflix deal. The funding structure has raised eyebrows, as it includes support from Jared Kushner’s investment firm, several Middle Eastern sovereign wealth funds, and the Ellison family, headed by tech billionaire Larry Ellison.
Larry Ellison reportedly criticized the Netflix deal in a conversation with President Donald Trump, insisting that the deal could weaken competition. Trump, however, said he had not discussed the matter with Kushner, adding that he had no personal loyalty to any of the bidders.
Paramount maintains that its full acquisition of Warner Bros. Discovery would strengthen Hollywood, preserve jobs and offer a smoother regulatory path compared to Netflix’s plan, which faces intense antitrust scrutiny. Netflix co-CEO Ted Sarandos responded by saying that Paramount’s aggressive move was expected, insisting that Netflix remained confident of finalizing its deal.
The concerns of American lawmakers and unions are growing. Critics say both deals could lead to further consolidation in an already shrinking industry. Democratic Senator Elizabeth Warren described Paramount’s bid as a “five-alarm antitrust fire,” citing the involvement of investors close to the White House.
The new offer offers a 139 percent premium over Warner Bros. Discovery’s valuation before negotiations began. Still, if Warner Bros. accepts Paramount’s proposal, it will owe Netflix a $2.8 billion breakup fee. Netflix, on the other hand, will pay $5.8 billion if its bid fails.
The market reaction on Monday reflected the tension in the air. Paramount shares rose 7.3 percent, Warner Bros. Discovery gained 5.3 percent, while Netflix shares fell 4 percent.
Industry analysts say the acquisition competition is far from over. Paramount insists it has submitted six proposals in the past 12 weeks, but claims Warner Bros management has not given the same consideration, suggesting the process favored Netflix.
With significant political stakes, strong financial backing and regulatory hurdles still ahead, the fight over Warner Bros. Discovery is shaping up to be one of the most dramatic corporate battles Hollywood has seen in years.
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