Paramount vs Netflix for Warner Bros. Discovery: What we know so far

A full-blown bidding war has erupted in Hollywood after Paramount Global, controlled by media scion David Ellison, launched a hostile all-cash offer for Warner Bros. Discovery (WBD), just days after the company agreed to be acquired by Netflix in a $72 billion transaction.

Paramount has now bypassed the WBD board and gone directly to shareholders, escalating the fight for control of one of the world’s most formidable entertainment empires.

The competing offers at a glance

Paramount’s tender offer values WBD at about $74.4 billion, offering shareholders $30 per share in cash. This compares with Netflix’s agreed bid of $27.75 per share, which is structured as a mix of cash and stock, with shareholders also retaining a stake in WBD’s linear television spin-out.

Crucially, Netflix is only acquiring WBD’s studios and streaming businesses, while Paramount is bidding for the entire company, including cable assets—making valuation comparisons more complex.

Paramount insists its offer is plainly superior. “The Paramount offer for the entirety of WBD provides shareholders $18 billion more in cash than the Netflix consideration,” the company said, adding that the Netflix-backed valuation of WBD’s global networks was “illusory” and “encumbered by high levels of financial leverage”.

Enticing shareholders

Because the Paramount proposal is a tender offer, it will succeed only if enough shareholders sell their stock directly to Paramount rather than approving the Netflix agreement. This sets the stage for what is expected to be a prolonged and very public campaign by all three companies.

“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” Ellison said. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery board in private, provides superior value, and a more certain and quicker path to completion.”

He added that the Netflix proposal exposes investors 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”.

Netflix’s deal and regulatory overhang

Netflix struck its deal last week to buy WBD’s key entertainment assets, including the Harry Potter franchise and HBO Max, in a transaction valued at $82.7 billion including debt. The deal excludes networks such as CNN and Discovery and is expected to close in 12–18 months, subject to regulatory clearances.

Political scrutiny has already intensified. Former US President Donald Trump said the Netflix–WBD deal “could be a problem” due to the scale of the combined market power and indicated federal authorities would closely examine the transaction.

‘Stronger Hollywood’ pitch

Paramount has also taken its case to the court of public opinion with a campaign website titled “StrongerHollywood”, arguing that its ownership would be better for the industry at large.

“We believe our offer will create a stronger Hollywood,” Ellison said. “It is in the best interests of the creative community, consumers and the movie theatre industry. They will benefit from enhanced competition, higher content spend and greater theatrical output.”

Share market reaction and Paramount offer deadline

Paramount’s offer will remain open until January 8, 2026, unless extended. On Monday, shares of both Paramount and WBD jumped 5–6% in early New York trading, while Netflix stock slipped marginally.