Paramount has launched a powerful all-cash bid for Warner Bros. Discovery, claiming its $108B offer surpasses Netflix’s deal. A major Hollywood merger battle unfolds.
Paramount Challenges Netflix with Higher All-Cash Bid for Warner Bros. Discovery
The battle for control of Warner Bros. Discovery (WBD) has erupted into one of the most dramatic corporate showdowns Hollywood has seen in years. Just days after WBD’s board accepted Netflix’s acquisition proposal, Paramount has taken an aggressive public step by appealing directly to WBD shareholders—insisting that its all-cash offer is not only richer, but also more likely to survive regulatory scrutiny.
The move sets the stage for a potential bidding war between the two entertainment giants, with billions of dollars and the future of Hollywood at stake.
Paramount Claims Its Offer Is $17.6 Billion Better
Paramount CEO David Ellison made his case bluntly in a CNBC interview, saying WBD shareholders deserve a chance to compare both deals side by side. According to Ellison, Paramount’s proposal is straightforward: $30 per share, all cash, for the entire company. In total, that values WBD at $108.4 billion.
Netflix, in contrast, offered $27.75 per share for Warner Bros. and HBO—$23.25 in cash and $4.50 in Netflix stock—leaving out WBD’s cable networks entirely. Netflix argues that the cable assets, such as CNN, would be spun off after the merger, creating additional value worth several dollars per share.
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But to Ellison, the math still favors Paramount.
“We are offering shareholders $17.6 billion more cash than the deal they currently have with Netflix,” he said. “When they see what is in our offer, that’s what they will vote for.”
Paramount also noted that Netflix’s deal values the included parts of WBD at $82.7 billion, far below its own full-company valuation.
Why WBD Chose Netflix—And Why Paramount Is Fighting Back
Despite Paramount being widely expected to be the frontrunner, WBD’s board selected Netflix’s offer last week. The board has long believed that spinning off cable networks would unlock more shareholder value than keeping them tied to the studio and streaming segments.
Netflix’s entry into the race stunned many industry observers, including Ellison, who has consistently positioned Paramount as the better cultural and strategic match for Warner Bros.
In its response on Monday, Paramount argued that the WBD board was pursuing an inferior deal and that shareholders—not executives—should decide.
A Stock Market Surge Signals a Coming Bidding War
Investors reacted immediately. On Monday:
- WBD stock jumped 7% to nearly $28
- Paramount stock rose 4%
- Netflix shares slipped more than 3%
The market clearly expects Netflix to come back with an even stronger counteroffer, raising the stakes further.
Regulatory Approval: Paramount Says Netflix Has a Problem
One of Paramount’s biggest talking points is antitrust risk. Ellison argued that combining the No. 1 streaming platform (Netflix) with HBO Max, currently No. 3, could be a red flag for regulators—especially under an administration that claims to support market competition.
He also referenced his positive relationship with President Donald Trump, implying that his own deal may face fewer regulatory hurdles.
Netflix disputes this characterization. It points to Nielsen’s total TV usage metrics, where Netflix accounts for 8% and Paramount for 8.2%, ranking Netflix sixth overall. By that measure, Netflix argues it does not dominate the market nearly as much as Paramount claims. YouTube holds the No. 1 spot, with Disney in second place.
Using these broader industry metrics, Netflix says the merger should have no problem obtaining approval.
The Future of Hollywood at Stake
Beyond shareholder math and regulation, Ellison appealed directly to filmmakers, audiences, and Hollywood’s creative community. He issued a stark warning that a Netflix-WBD merger would be a devastating blow to theaters.
“It would be the death of the theatrical movie business in Hollywood,” Ellison argued. “It’s bad for consumers, and it’s bad for the creative community. We’re trying to save it.”
Paramount, which still relies heavily on theatrical releases as part of its identity, believes that a studio like Warner Bros. shouldn’t be folded deeper into Netflix’s streaming-focused ecosystem.
If Netflix gains control, industry insiders fear a shift toward even more streaming-exclusive releases, potentially accelerating the decline of cinemas.
What Happens Next?
With Paramount’s public move, the situation has shifted from private negotiations to a high-stakes corporate showdown. Several outcomes now seem possible:
- Netflix raises its offer to match or beat Paramount’s cash-heavy proposal.
- WBD shareholders revolt, forcing the board to consider Paramount’s bid.
- Both companies continue escalating, leading to a full-scale bidding war.
- Regulators intervene early, hinting at which proposal has a smoother path.
There is no guarantee how long this battle will last or which bidder ultimately prevails. What is certain is that the future of Warner Bros.—one of Hollywood’s most storied studios—is being reshaped in real time.
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