Paramount cancels the Netflix-Warner Bros. party with a rival bid of £108 billion

Monday 08 December 2025 17.06
| Updated:

Monday 08 December 2025 17.38

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Paramount Skydance has launched a hostile takeover bid for Warner Bros. Discovery (WBD), making the film giant’s latest deal with streaming giant Netflix uncertain.

On Monday, Paramount said its $30 (£22.50) per share cash tender offer gave shareholders $18 billion more than Netflix’s $27.75 per share offer.

Paramount chief executive David Ellison argued that the deal was “a surer and quicker path to completion”, and that the WBD board was pursuing a “lesser proposal” in favor of Netflix.

He added: “We are confident our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the cinema industry.”

The tender offer is aimed directly at shareholders, giving them the opportunity to consider Paramount’s proposal versus Netflix’s transaction, which only includes WBD’s streaming and studio assets.

But Paramount’s offer, on the other hand, targets the entire company, including its linear TV networks.

Paramount has launched a dedicated website, ‘StrongerHollywood.com’, which explains the company’s offer and highlights how it differs from the Netflix deal.

Netflix secured a $72 billion deal last Friday to acquire Warner Bros. Discovery’s TV, film studio and HBO Max streaming assets after a bidding war with Paramount and Comcast.

The transaction, whose asset value is $82.7 billion including debt, carries a termination fee of $5.8 billion if the deal is blocked or abandoned.

Paramount said these fees alone signal how uncertain Netflix is ​​regarding regulatory approval, thereby telling investors they can bypass Washington more easily.

Capital related to Kushner has also become a topic of discussion

New regulatory filings reveal that Affinity Partners, Trump son-in-law Jared Kushner’s private equity firm, is backing Paramount’s hostile bid, along with sovereign wealth funds from Saudi Arabia, Abu Dhabi and Qatar.

None of these investors will receive governance rights or board seats, but their presence strengthens Paramount’s argument that its financing package is completely secure and durable.

But the affiliation is likely to raise doubts. Paramount is led by David Ellison, whose father Larry Ellison is a longtime supporter of President Trump.

Kushner’s involvement could give Paramount a smoother path than Netflix, especially as Trump has already warned the Netflix-WBD deal “could be problematic,” due to market share concerns.

Paramount has made multiple offers since September, citing concerns over the fairness of WBD’s sales process.

The film giant alleged that management had already identified Netflix as the winner, describing the Netflix deal as a “slam dunk” while rejecting Paramount’s offer.

Trump’s intervention

The deal is likely to face antitrust scrutiny in the US, where Donald Trump on Sunday announced that a Netflix-WBD combination could raise market share concerns.

He also indicated that he would be personally involved in the approval process.

Netflix Co-Chief Ted Sarandos previously expressed confidence in clearing up the red tape, and argued that the acquisition would provide value for consumers, talent and shareholders.

The deal also gives Netflix exclusive control over high-profile intellectual properties, including Harry Potter, Game of Thrones and DC Universe, which could support the company’s broader ambitions in gaming and live entertainment.

Paramount’s bid represents a new push to build a media powerhouse capable of challenging Netflix and technology companies entering the world of entertainment, including Apple.

The outcome will likely depend on shareholder response and regulatory review, and both offerings are subject to increased scrutiny.

Ben Barringer, head of technology research at Quilter Cheviot, said: “Paamount ultimately needs this deal more than Netflix”, as it “doesn’t have the scale needed for the modern era”.

He added: “For Netflix, this kind of asset remains a nice asset to have and not a necessity. The decision is in Netflix’s hands and they will likely want to show some discipline.”

Pressure is mounting on Warner Bros

The outcome will likely depend on shareholder response and regulatory review, and both offerings are subject to increased scrutiny.

WBD shares rose in pre-market trading, while Netflix shares experienced slight fluctuations amid new competition.

But it seems investors are now considering the price gap, $30 versus $27.75, as well as two very different regulatory journeys.

David O’Hara, managing director at MKI Global Partners, argued: “With Paramount Skydance, scrutiny shifts from streaming dominance to studio scale and cable reach…Both raise serious antitrust questions.”

He also added that Paramount’s all-cash structure gives shareholders “certainty over the overall value of the assets,” unlike Netflix’s offer which is contingent on the valuation of the separated Networks business.