Paramount has launched a hostile bid to acquire Warner Bros. Discovery, directly challenging Netflix’s recently announced takeover deal valued at $72 billion.
The US entertainment group said on Monday that it will go straight to Warner Bros shareholders with a $30 per share cash offer for the entirety of the company, including its Global Networks business. Paramount urged shareholders to reject the agreement signed with Netflix just days earlier.
The same offer had previously been turned down by Warner Bros in favour of Netflix’s proposal, a move that would reshape the entertainment industry in the United States.
Paramount sharply criticised the Netflix deal, saying it “exposes WBD shareholders to a protracted multi jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash.”
The company said it had made six proposals to Warner Bros. Discovery over a 12 week period.
“We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry,” Paramount Chairman and CEO David Ellison said in a statement.
We believe they will benefit from the enhanced competition, higher content spend and theatrical release output, and a greater number of movies in theaters as a result of our proposed transaction.”
On Friday, Netflix signed a deal to buy Warner Bros. Discovery, the studio behind “Harry Potter” and HBO Max. The cash and stock deal is valued at $27.75 per Warner share, giving it a total enterprise value of $82.7 billion including debt. It is expected to close within 12 to 18 months after Warner completes the separation of its cable operations. Networks such as CNN and Discovery are not included in the sale.
However, President Donald Trump said Sunday that Netflix’s agreement to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. He added that he will be involved in determining whether the federal government should approve the deal.
Paramount’s tender offer will expire on Jan. 8, 2026, unless extended.
Shares of Warner Bros and Paramount rose between 5 and 6 percent at the opening bell Monday, while Netflix shares edged lower.
