Mumbai: In a dramatic escalation of Hollywood’s most closely watched takeover battle, Paramount on Monday unveiled an all-cash tender offer to acquire all outstanding shares of Warner Bros. Discovery (WBD) at $30 per share, valuing the company at an enterprise value of $108.4 billion. The move takes the fight directly to WBD shareholders after weeks of tense, behind-the-scenes bidding.
Paramount’s proposal marks a direct challenge to the deal WBD struck last Friday with Netflix, which agreed to acquire Warner Bros.’ studio assets for $27.75 per share in a cash-and-stock combination, giving the transaction an equity value of $72 billion (enterprise value $82.7 billion). That agreement requires WBD to first spin off its linear networks into a separate public company by the third quarter of 2026 and faces an estimated 12–18-month regulatory approval window.
Paramount Attacks “Illusory” Valuation Behind Netflix Deal
Paramount argued its bid delivers $18 billion more in cash than the Netflix consideration and criticized WBD’s board for backing what it called an “illusory prospective valuation” of the Global Networks business — the segment Netflix’s deal leaves behind.
CEO David Ellison said shareholders deserve a clear alternative to a transaction that, in his view, combines uncertain stock value, execution risk, and a protracted regulatory path. “We are taking our offer directly to shareholders to allow them to maximize the value of their shares,” Ellison said, accusing WBD of failing to “meaningfully engage” despite six proposals submitted over the past 12 weeks.
Unlike Netflix’s bid, Paramount’s offer seeks to acquire all of WBD, including its Global Networks operations.
Bid Backed by Ellison Family, RedBird, and $54B in Debt Commitments
The aggressive offer is reinforced by deep-pocketed financing: the Ellison family, led by Oracle co-founder Larry Ellison, and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi and Apollo. Paramount said the financing structure allows it to deliver a cleaner, faster close than the competing deal.
The tender offer is currently set to expire January 8 at 5 p.m. ET, though Paramount may extend the deadline.
Regulatory Battlefront Emerges
A central pillar of Paramount’s argument is that its acquisition would face a smoother regulatory path than Netflix’s. The company warned that merging Netflix with WBD — which would combine the world’s largest subscription streaming platform with the No. 2 or No. 3 competitors in several major markets — presents substantial antitrust risks, particularly in Europe.
Paramount contended that Netflix’s 43% global SVOD share would create a structural imbalance, potentially resulting in higher prices for consumers, reduced earnings for creators, and damage to theatrical exhibitors. Netflix is expected to counter that it competes not just with premium streamers but with the broader video ecosystem, including YouTube.
Adding a political wrinkle, reports indicate that both the Ellison camp and Netflix have courted former U.S. President Donald Trump. Trump, who praised Netflix co-CEO Ted Sarandos over the weekend, nevertheless warned that a Netflix–HBO Max combination could raise concerns given the platforms’ “very big market share.”
Paramount Casts Its Bid as Pro-Hollywood and Pro-Theatrical
Beyond financial terms, Paramount positioned its offer as a safeguard for Hollywood’s broader creative and industrial ecosystem. Ellison said a combined Paramount–WBD would result in greater theatrical output, increased content investment, and renewed competitive pressure across the entertainment landscape.
“We believe our offer will create a stronger Hollywood,” he said, emphasizing benefits for creatives, consumers, and exhibitors.
What Comes Next
Paramount’s decision to go public sets the stage for a high-stakes shareholder showdown, with WBD investors now weighing certainty of cash against Netflix’s mixed consideration and strategic appeal. Whether WBD’s board revisits its position — or whether Netflix counters — could determine the next reshaping of the entertainment industry.
For now, Paramount is banking on shareholder frustration and regulatory uncertainty to shift momentum its way, marking the latest twist in a takeover saga with implications far beyond Hollywood.
