Paramount Ups the Stakes in a Fierce Battle for Warner Bros Discovery
So, here’s what’s happening right now in Hollywood’s biggest corporate showdown — and it honestly feels like something straight out of a blockbuster drama. Paramount Skydance has jumped back into the ring with a bold, all-cash offer to buy Warner Bros Discovery, and it’s doing so in a way that completely shakes up the story that had been unfolding over the past few days.
Just when Warner Bros Discovery had announced Netflix as the winning bidder in its formal auction — with a deal valued at around $83 billion including debt — Paramount came forward with what it says is a “superior alternative.” Their offer, valued at $108.4 billion for the entire company, is being taken directly to Warner Bros shareholders at $30 a share. In corporate terms, that’s basically Paramount saying, “We’re done waiting — here’s a better deal, and we want you to choose it.”
This move is more than just aggressive; it’s strategic. Paramount argues that its bid offers more cash upfront and a faster, cleaner path to regulatory approval. And honestly, the regulatory angle matters a lot. President Donald Trump has already hinted that Netflix’s proposed purchase “could be a problem,” pointing to the sheer size and market power Netflix would hold if it secured Warner Bros’ enormous catalog — including HBO, Harry Potter, and the classic Warner library.
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David Ellison, who leads Paramount and is backed by the wealthy Ellison family, has been very vocal about why he thinks Netflix’s takeover would be bad for Hollywood. He’s warned that one dominant player controlling both Netflix and Warner Bros content could leave actors, producers, writers, and even rival studios at a disadvantage. According to him, his plan spreads out the power and keeps competition healthy — something he says Trump cares about, based on their recent conversations.
What makes this even more dramatic is that Paramount had already submitted six proposals over 12 weeks, but the Warner Bros board hadn’t really engaged with them. Then Warner Bros chose Netflix, planning to split off CNN and other traditional networks into a separate company before finalizing the sale. Paramount thinks that spin-off would set those networks up to struggle, and Ellison hasn’t hesitated to call it a mistake.
Wall Street clearly took notice of the new twist. Shares of Warner Bros jumped more than 6% when news of Paramount’s bid surfaced, and Paramount’s own stock climbed too. Netflix, meanwhile, saw its shares fall over 3%, which shows just how seriously investors are taking this new challenge.
Netflix still believes its takeover would supercharge its business and help it stay ahead in the streaming wars. Analysts, however, say Paramount might actually be the better long-term partner, simply because it needs the scale more than Netflix does.
What’s clear is that this takeover battle is far from over — and Hollywood’s future may look very different depending on who ends up holding the keys to Warner Bros Discovery.
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