Paramount Skydance Launches $108.4 Billion Hostile Bid for Warner Bros Discovery Amid Competing Netflix Offer
Paramount Skydance, led by David Ellison, has initiated a $108.4 billion all-cash hostile bid to acquire Warner Bros Discovery (WBD) in full.
This move directly challenges Netflix’s competing $82.7 billion offer to acquire WBD’s studio and HBO assets, excluding CNN and Discovery channels. Netflix proposes to pay $23.25 in cash plus $4.50 in Netflix stock per WBD share.
Paramount’s hostile approach bypasses WBD’s board, aiming to persuade shareholders directly by offering a higher per share price and potentially a stronger chance of regulatory approval.
WBD’s board announced it will carefully review Paramount’s approach but remains aligned with its existing Netflix deal, planning to provide a board recommendation to shareholders within about 10 days.
Paramount’s offer is set to expire at 5pm on 8 January 2026, though the tender window could be extended or withdrawn.
Financing for Paramount’s bid includes involvement from Affinity Partners, Jared Kushner’s firm, which adds complexity as the deal might face scrutiny from the Department of Justice and the Committee on Foreign Investment in the United States due to foreign funding.
If the Netflix deal closes, Netflix would acquire HBO, DC/Warner Bros franchises, and the Warner Bros studio. Conversely, if Paramount wins, CNN would move to Paramount, reshaping the cable news landscape.
This bidding war unfolds against a backdrop of political and regulatory scrutiny. Critics like Elizabeth Warren have warned about the dangers of media consolidation, and there is potential European Union intervention over concerns of "excessive media contraction."
