In a bold and unexpected move, Paramount has made an all-cash offer directly to shareholders of Warner Bros. Discovery (WBD) in an effort to wrest control of one of Hollywood’s most coveted studios. The move comes after WBD last week agreed to a deal with Netflix, which had been widely seen as the frontrunner in acquiring the company. Paramount CEO David Ellison insists that his offer provides superior value and is better positioned to win shareholder approval.
Paramount’s offer stands at $30 per share in cash, valuing the entire company at $108.4 billion, compared to Netflix’s proposal of $27.75 per share, which combines $23.25 in cash and $4.50 in stock, totaling $82.7 billion. Netflix’s offer, however, does not include the value of WBD’s cable channels, including CNN, which the company plans to spin off. WBD has maintained that the Netflix deal represents a more lucrative overall value for shareholders, citing the expected gains from the future cable spinoff.
Ellison, speaking to CNBC, framed the bid as a shareholder-focused alternative, arguing that Paramount’s all-cash offer provides a clearer, faster, and more certain path to completion. “We are offering shareholders $17.6 billion more cash than the deal they currently have with Netflix,” he said. “WBD shareholders deserve the opportunity to consider our superior proposal.”
The Paramount bid emphasizes the full acquisition of WBD, contrasting with Netflix’s partial approach. Ellison claims that a complete takeover is better for the studio, investors, and the creative industry, and stresses that the offer has a higher likelihood of regulatory approval compared to Netflix’s plan to merge the No. 1 streaming platform with HBO Max, which could raise antitrust concerns.
The announcement immediately sent WBD shares up 7% to nearly $28, while Paramount’s stock rose 4% and Netflix fell more than 3%, signaling that investors are anticipating a potential bidding war. Should WBD ultimately accept Paramount’s bid, Netflix would be entitled to a $2.8 billion breakup fee.
Ellison framed Paramount’s bid not just as a financial offer, but as a strategic effort to preserve Hollywood’s creative ecosystem. He warned that a Netflix-WBD merger could spell the “death of the theatrical movie business” and reduce competition. “It’s bad for consumers and bad for creators,” Ellison said. He stressed that acquiring WBD would create a healthy competitor to Netflix and Disney, ensuring a vibrant marketplace for films, TV, and streaming content.
Ellison detailed his vision for Paramount, pledging to release 30 movies per year exclusively in theaters and support the broader creative community. He also revealed plans to integrate CBS News with CNN, aiming to build a “scaled news service fundamentally based on trust and truth,” appealing to the middle 70% of Americans.
Paramount’s financial backing is robust, drawing on a mix of private investors, sovereign wealth funds, and family support. Ellison’s father, Larry Ellison, Oracle’s executive chairman, is contributing an unspecified amount of equity, while investment partners include the Saudi Public Investment Fund, Qatar, and Affinity Partners, co-led by Jared Kushner. Paramount has agreed that these foreign investors will not hold board seats or voting rights to avoid national security issues.
Ellison has also leveraged political connections, highlighting a productive relationship with President Donald Trump, which he believes could support regulatory approval. While Netflix contends that its deal will pass antitrust scrutiny, Paramount argues that combining two major streaming platforms is inherently anti-competitive. Ellison compared the situation to an improbable Coca-Cola-Pepsi merger, noting that the metrics show Netflix ranks lower than Paramount on total viewing time despite being the largest streaming service.
With the hostile bid now public, Paramount is appealing directly to WBD shareholders to consider its offer. The move marks an extraordinary moment in Hollywood’s corporate landscape, potentially triggering a bidding war and reshaping the media industry.
