Paramount says not so fast - launches hostile takeover bid for Warner Brothers to stop Netflix takeover

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Paramount is making a hostile takeover bid for Warner Bros. Discovery. (AaronP/Bauer-Griffin/GC Images / Getty Images)

The Netflix deal to purchase Warner Bros. Discovery studio and streaming business has turned into a bidding war with Paramount Skydance launching a hostile bid.
 

Dig deeper:

On Monday, Paramount Skydance went straight to Warner Bros. shareholders, launching a hostile bid worth about $74.4 billion, or $30 per share in cash.  The offer is worth about $18 billion more than last week’s bid from Netflix. 

Paramount's proposed transaction is for the entirety of Warner Bros., including the Global Networks segment that includes CNN and other cable assets. 

In a press release, Paramount said its "proposal is more compelling to WBD shareholders on several fronts" including the price, structure and regulatory certainty. 

"An all-cash offer at $30.00 per share, equating to an enterprise value of $108.4 billion, which represents a 139% premium to the undisturbed WBD stock price of $12.54 as of September 10, 2025. In contrast, the Netflix proposal entails a volatile and complex structure valued at $27.75 mix of cash ($23.25) and stock ($4.50), subject to collar and the future performance of Netflix, equating to an enterprise value of $82.7 billion," the release states.
 

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By the numbers:

Last week, streaming giant Netflix reached a $72 billion takeover deal for Warner Bros. Discovery's film and television studios and streaming platform, HBO Max, in a cash-and-stock deal valued at $27.75 per Warner Bros. 

Paramount Skydance says its offer is worth about $18 billion more than the competing bid from Netflix, which it says is based on an "illusory prospective valuation" of those cable assets.
 

The backstory:

In June, Warner announced its intention to split its streaming and studio operations from its cable business plans for HBO, HBO Max, as well as Warner Bros. Television, Warner Bros. Motion Picture Group, DC Studios, to become part of a new streaming and studios company.

The Associated Press reported that networks like CNN, Discovery and TNT Sports and digital products like the Discovery+ streaming service and Bleacher Report would make up a separate cable counterpart called "Discovery Global." Discovery Global will become a new publicly-traded company, in a process now expected to be completed in the third quarter of 2026.

Last week, Netflix said In a release, the merger of the two companies will create more viewing options for consumers between their streaming platform and the Warner Bros. film and television libraries as well as HBO and HBO Max programming. 

Additionally, popular TV shows and movies like "The Big Bang Theory," "The Sopranos," "Game of Thrones," "The Wizard of Oz" and the DC Universe will join Netflix’s catalog of programming including "Wednesday," "Money Heist," and "Bridgerton."
 

Government taking a close look at Netflix deal

On Sunday, President Donald Trump said the deal struck by Netflix to buy Warner Bros. Discovery "could be a problem" because of the size of the combined market share. The Senate is readying for an antitrust hearing.