Paramount has taken its bid for Warner Bros. Discovery directly to shareholders, challenging Netflix’s recently announced takeover deal and escalating a major battle over the future of Hollywood’s studio landscape.
The company said Monday it is offering about $74.4 billion, or $30 per share in cash, and is urging Warner Bros. Discovery shareholders to reject Netflix’s competing $72 billion agreement reached just days earlier. Paramount’s proposal also includes the purchase of Warner’s cable assets, which are not part of the Netflix deal.
Paramount argued its offer carries fewer regulatory risks and provides more certainty, calling Netflix’s valuation of Warner’s cable properties “illusory.” The company noted it had made six proposals over 12 weeks, all of which were rejected in favor of Netflix.
“We believe our offer will create a stronger Hollywood,” Paramount Chairman and CEO David Ellison said in a statement. He said the deal would increase competition, content spending, theatrical output, and the number of movies released in theaters.
Netflix’s Deal and Regulatory Questions
Netflix announced Friday it had reached a cash-and-stock agreement to acquire Warner Bros. Discovery’s studio and streaming businesses. The offer is valued at $27.75 per share, giving the deal an enterprise value of $82.7 billion, including debt.
That transaction is expected to close within 12 to 18 months, pending regulatory approval and Warner’s planned separation of its cable operations. Networks such as CNN and Discovery are not included in the sale.
President Donald Trump said Sunday the proposed Netflix-Warner merger “could be a problem” due to the combined companies’ market share and said he intends to be involved in the federal government’s review of the deal.
Trump Ties and Industry Context
Usha Haley, a professor at Wichita State University who specializes in international business strategy, noted that Paramount CEO David Ellison is the son of Larry Ellison, the world’s second-richest person and a longtime supporter of Trump. She said the president’s comments signal an intent to exert influence over the merger review process.
In October, Paramount acquired The Free Press and named its founder, Bari Weiss, as editor-in-chief of CBS News. The company said the move reflected a commitment to news that is “balanced and fact-based,” marking a significant leadership shift for a network long viewed as part of the traditional media establishment.
What Happens Next
Paramount’s tender offer is set to expire on January 8, 2026, unless extended.
Shares of Warner Bros. Discovery and Paramount rose between 5% and 6% in early Monday trading. Netflix shares edged lower.
