Paramount Launches Hostile $108.4 Billion Bid for Warner Bros. Discovery

Paramount Skydance has initiated a $108.4 billion all-cash hostile takeover bid for Warner Bros. Discovery (WBD), directly challenging Netflix's earlier $72 billion acquisition agreement. The offer, valued at $30 per share, encompasses all of WBD's assets, including its cable networks and movie studio.

David Ellison, Chairman and CEO of Paramount, stated, "WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company." He emphasized that the proposal offers "superior value, and a more certain and quicker path to completion."

The bid is backed by the Ellison family and RedBird Capital, with debt financing fully committed by Bank of America, Citi, and Apollo.

This move follows Netflix's agreement to acquire WBD's studio and streaming businesses, including HBO Max and DC Studios, for $72 billion. Netflix's deal, a mix of cash and stock, is expected to close within 12 to 18 months, pending regulatory approval.

Paramount's offer is set to expire on January 8, 2026, unless extended. WBD has ten days to respond to the bid.

The competing bids have raised antitrust concerns, with critics warning of reduced competition and potential harm to consumers. The U.S. government is expected to scrutinize both deals under antitrust laws due to the considerable market power the merged entities would wield.