Los Angeles, USA – Hollywood is facing its most aggressive takeover battle in years after Paramount Skydance Corporation launched a $108.4 billion hostile bid to acquire the entirety of Warner Bros. Discovery (WBD). The massive all-cash proposal directly challenges the $82.7 billion deal WBD had previously accepted from streaming giant Netflix just days prior.
The highly contentious offer, announced on Monday, December 8, 2025, signals Paramount’s determination to derail the Netflix deal and create a new media empire capable of competing at the highest global level.
Paramount’s Superior Offer and Hostile Strategy
Paramount’s bid, led by CEO David Ellison, is valued at $30.00 per share for the entire WBD conglomerate, including its valuable cable network division (CNN, TNT, TBS). This is a significant premium to Netflix’s accepted offer, which valued WBD at approximately $27.75 per share and excluded WBD’s Global Networks division.
Paramount’s hostile approach includes:
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Going Straight to Shareholders: Paramount has bypassed WBD’s board, commencing an all-cash tender offer directly to shareholders, accusing the board of pursuing an “inferior proposal” that favors Netflix.
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Accusations of Bias: Paramount alleged that WBD’s sales process was “tainted” and favored a single bidder, citing reports that WBD management internally described the Netflix deal as a “slam dunk” while criticizing Paramount’s earlier overtures.
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Regulatory Certainty: Paramount argues that its full-company acquisition is simpler and more likely to secure regulatory clearance than the complex Netflix deal, which would require the divestiture of the cable network business and faces heightened antitrust scrutiny.
The Netflix Deal and Regulatory Concerns
Netflix’s bid, which was accepted on Friday, aimed to acquire WBD’s studios, film library (including DC Comics and Harry Potter), and the HBO Max streaming service. However, the deal has drawn political attention and market doubt:
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Political Scrutiny: US President Donald Trump publicly weighed in, stating the Netflix deal “could be a problem” due to market concentration and adding that he would be involved in the regulatory decision.
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The Break-up Fee: Netflix’s accepted deal includes a hefty $5.8 billion break-up fee, signaling their confidence, but if WBD were to back out for a competing offer, WBD would have to pay a substantial penalty.
Market Reaction and What’s at Stake
The aggressive counter-bid immediately sent shockwaves through the market:
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WBD Shares: Warner Bros. Discovery shares surged over 7% in premarket trading, moving closer to Paramount’s $30.00 per share offer.
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Paramount Shares: Paramount’s stock fell nearly 10%, reflecting investor caution over the massive debt commitment required for the $108 billion acquisition, which is backed by the Ellison family fortune and major financial institutions.
The winner of this corporate showdown will control some of the world’s most valuable entertainment franchises, including HBO, DC Comics, the Harry Potter universe, and an unparalleled film and television library, fundamentally reshaping the competitive landscape of global entertainment and streaming.
