Paramount Bid Shocks Hollywood as $108B Offer Targets WBD
Paramount has sparked a wave of urgent searches today as Hollywood watchers ask what its new $108.4 billion hostile bid means for the Warner Bros. Discovery deal and whether it can derail Netflix’s surprise $82.7 billion acquisition attempt. Within hours of the announcement, questions around shareholder value, regulatory approval, and the future of major studio ownership began trending across entertainment and business circles. Paramount’s move marks one of the most aggressive acquisition plays Hollywood has seen in a decade, and its timing signals a direct challenge to the momentum Netflix thought it had secured last week.
Credit: Paramount
Paramount Launches Hostile $108.4B Bid for Warner Bros. Discovery
The new Paramount bid, announced early Monday, immediately positioned the company as a formidable competitor in the race for Warner Bros. Discovery (WBD). By going directly to WBD shareholders, Paramount bypassed the board and forced the deal back into the public arena. The bid offers $30 per share in all cash—a strategic contrast to Netflix’s cash-plus-stock deal. For investors weighing predictability during a volatile market, Paramount is betting that a pure cash offer will feel more secure. The move also signals Paramount’s determination to rapidly scale its own entertainment footprint, especially as consolidation continues to reshape the industry.
The Bid Outranks Netflix by $18 Billion in Cash Value
One of the most immediate shockwaves across markets comes from the valuation difference between the Paramount bid and the Netflix proposal. Netflix had offered WBD shareholders $23.25 in cash and $4.50 in Netflix stock, totaling $27.75 per share. Paramount’s $30 all-cash offer beats that by a full $18 billion in overall cash value. The higher cash component could be compelling for investors wary of Netflix’s stock volatility, particularly as regulatory pressure and global subscriber growth slowdowns continue. Paramount’s messaging is clear: this deal provides certainty, liquidity, and fewer unknowns.
Paramount Aims to Acquire All of WBD, Not Just Its Studios
Another crucial difference is the scope of the acquisition. While Netflix is aiming to buy WBD’s Hollywood studios and streaming businesses, Paramount wants the entire company—including global networks and cable assets. This broader acquisition vision positions Paramount to expand across multiple media verticals at once. However, this also introduces complexity. Owning WBD’s full portfolio brings significant regulatory scrutiny, especially across international markets. Still, Paramount is framing this as an opportunity to stabilize the fragmented cable sector while boosting its own streaming and theatrical ecosystem.
WBD’s Board Already Rejected These Same Terms a Week Ago
In a surprising twist, CNBC reported that the WBD board already rejected these terms from Paramount just a week earlier. That rejection was made before Netflix secured its tentative agreement with WBD. Now that the Netflix deal is public, Paramount’s decision to go hostile illustrates its confidence that shareholders could be persuaded to override the board’s earlier stance. This tension sets the stage for a dramatic shareholder battle that may unfold over the next several weeks. The board’s earlier rejection signals resistance—but shareholders may see things differently with the higher payout now on the table.
Paramount Accuses WBD of Choosing an “Inferior Proposal”
Paramount CEO David Ellison took an unusually direct tone in Monday’s statement, calling the Netflix deal “inferior” while warning that it exposes WBD shareholders to stock-based uncertainty. Ellison also cited concerns about the future trading value of WBD’s global networks business, which Netflix does not intend to acquire. He emphasized that a mixed cash-and-stock deal could complicate investor returns while prolonging regulatory approval timelines. The firm tone reflects Paramount’s effort to win over shareholders quickly by framing the choice as one between clarity and risk.
Financing Backed by Ellison Family, RedBird, and Major Banks
To demonstrate financial readiness, Paramount revealed that its offer is fully backstopped by a mix of equity financing and debt commitments. The Ellison family and RedBird Capital are contributing a substantial equity investment, while Bank of America, Citi, and Apollo have collectively pledged $54 billion in debt financing. This level of backing signals to shareholders that Paramount is prepared for a long, complex approval process if the bid is accepted. It also reflects confidence from major financial institutions that the deal could reshape the entertainment market in a profitable way.
Netflix Briefly Held the Lead After Winning Friday’s Bidding Round
Just days ago, Netflix appeared to have secured a lead after winning a competitive bidding round for WBD’s film and streaming units. The deal was seen as a landmark moment for Netflix, marking its first major acquisition of a Hollywood studio. Entertainment analysts described the move as a sign of Netflix transitioning from a streaming disruptor to an all-out media conglomerate. Now, with Paramount’s larger and more aggressive offer, Netflix finds itself in a defensive position, needing to persuade shareholders and regulators that its proposal offers longer-term strategic advantages.
Hollywood Braces for a High-Stakes Corporate Battle
Across Los Angeles, insiders describe this as the most consequential entertainment takeover battle since Disney purchased Fox. Both deals involve massive libraries, global rights, and the future of streaming dominance. Paramount’s aggressive strategy puts pressure on regulators, shareholders, and competing studios that rely on WBD content. Producers and creators are also watching closely, wary of potential layoffs, restructuring, and programming shifts. The industry is preparing for months of uncertainty as both buyers attempt to lock in support.
Shareholders Now Hold the Power to Shift the Outcome
As both companies make their case, the next phase hinges on shareholder sentiment. Paramount is betting that the higher cash offer will sway investors, especially those prioritizing short-term liquidity. Netflix may counter with arguments around long-term growth potential and synergy within its existing platform. Whichever path shareholders choose, the decision will influence Hollywood’s landscape for years to come, shaping how studios consolidate and how content reaches audiences worldwide.
What Happens Next for Paramount, Netflix, and WBD
The battle is far from over. Paramount’s hostile bid forces the WBD board to respond publicly, and Netflix may revise its offer to maintain competitiveness. Regulators in the U.S. and abroad will begin reviewing both proposals, analyzing potential anticompetitive risks. Over the coming weeks, shareholders can expect a steady stream of investor calls, revised bids, and behind-the-scenes negotiations. Whether this ends in a bidding war, a merger collapse, or an unexpected third-party entrant remains to be seen—but one thing is clear: Hollywood is entering a new era of high-stakes consolidation.
