Paramount Just Pulled a Power Move to Steal Warner Bros. From Netflix

Paramount has jumped straight into Netflix’s lane and is trying to snatch Warner Bros. Discovery (WBD) away with a big, bold, all-cash offer. The offer comes after Paramount lost out to Netflix to buy WBD, announced on Friday.

The company is offering $30 per share, which is way higher than WBD’s recent stock price, and it’s pitching the deal directly to shareholders instead of going through the board. Yes, this is a hostile takeover bid to start off a Monday worth $108.4 billion, which is $17.6 billion more than what Netflix is offering.

This is happening because WBD had already agreed to a merger with Netflix, but it’s a complicated mix of cash and stock and leaves WBD’s cable networks spun off into a smaller, heavily indebted company.

Paramount basically says that deal is messy, risky and worth less money. They claim their offer gives WBD shareholders about $18 billion dollars more in straight cash than what Netflix is putting on the table.

Paramount also argues that the Netflix deal could run into major regulatory problems around the world. Netflix is already the biggest streaming service, and merging with WBD, which owns HBO and a huge library of movies and shows, could be seen as creating an even bigger streaming giant. That could slow things down or even block the merger entirely.

“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company. Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion. We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process. We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares,” said David Ellison, Chairman and CEO of Paramount, in a statement on Monday.

If Paramount wins, the combination would bring together two massive Hollywood studios, keep both releasing movies in theatres, merge Paramount+ with HBO Max, and build a huge lineup of sports rights and TV networks.

Paramount frames this as creating a stronger challenger to Netflix instead of making Netflix even more dominant. Paramount already has financing lined up, including billions from major banks and investors. The offer expires January 8, 2026, unless extended, so the pressure is on WBD.

The bottom line is that WBD shareholders now have a major decision. Netflix thought it had a deal done, but Paramount stepped in with a bigger, simpler, cash-loaded offer that could derail everything. It’s turning into one of the most dramatic Hollywood takeover battles in years.

President Trump said on the weekend that the Netflix deal to take over Warner Bros “could be a problem”, hinting at regulatory and competition concerns.