Paramount, led by Trump-aligned billionaire, enters bidding war with Netflix for Warner Bros
On Monday, Paramount Skydance made a new offer to Warner Bros Discovery to buy the company for $108.4 billion. Paramount is offering shareholders $30 per share and wants to acquire Warner Bros entirely, including CNN and other cable channels,the BBC reports.
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According to Paramount, its offer is a "more favorable alternative" to the Netflix deal, providing shareholders not only a higher price but also a greater chance of regulatory approval. Jared Kushner, President Donald Trump's son-in-law, is among the financial partners of Paramount involved in the deal, according to documents submitted to the Securities and Exchange Commission.
Last week, Netflix announced the acquisition of Warner Bros film studio and streaming networks for $72 billion. The deal was expected to close after the previously announced spin-off of the WBD Discovery Global division into a new public company, tentatively in the third quarter of 2026.
Trump said that with the Netflix deal "there could be problems," citing concerns about competition due to the market share controlled by Netflix and Warner Bros.
In an interview with CNBC on Monday, Paramount owner David Ellison spoke about the benefits of his plan for the entire media industry, arguing that Netflix's acquisition of Warner Bros Discovery would concentrate too much influence in the hands of one company.
"This is a terrible deal for Hollywood," he said.
Ellison added that, in his opinion, Warner Bros' intention to spin off cable TV channels into an independent company would doom them to failure and ultimately be a mistake for shareholders.
"I think [these shares] will be worth significantly less than people claim," Ellison stated.
Netflix executives on Monday called Paramount's attempt to outbid their offer "completely expected" and expressed confidence in the success of their plans.
Many on Wall Street consider Paramount a strong player in the race to buy Warner Bros, partly because the Ellison family, who owns the company, is a major donor to the Republican Party and the relationship between Larry and David Ellison and Trump will help facilitate the deal's approval process.
On Monday, Trump stated that neither party "is my friend," and emphasized that he wants "to do the right thing." He added that he had not discussed Paramount's offer with Kushner. However, Trump made it clear that he intends to participate in the decision-making regarding the approval or disapproval of the deal.
A merger of companies of this size is expected to attract the attention of antitrust regulators in the US and Europe.
Analysts noted that Netflix's plan would likely raise concerns about streaming market dominance, while Paramount's offer would require scrutiny due to potential impact on the news business and the Ellison family's ties to Trump.
Last month, Democratic senators warned that such a deal would result in "one company controlling almost everything Americans watch on television."
Paramount already controls broadcast television channels such as Nickelodeon, CBS, and Comedy Central. Acquiring Warner Bros would bring it CNN, the Food Network, and a host of sports TV channels.
At the same time, according to analysts, a merger of Paramount and Warner Bros looks logical, as it would provide the company with sufficient scale to compete against giants like Netflix and Disney.
The board of directors of Warner Bros Discovery stated that it would consider Paramount's offer, but maintains its previous position on the Netflix deal. The company was advised "not to take any action for now" regarding Paramount Skydance's proposal.
Netflix is the world's largest streaming service by subscriber count, with over 300 million subscribers. Paramount has its own streaming service with 79 million subscribers.
One of Warner Bros' valuable assets is the HBO Max streaming service, famous for premium series such as "Game of Thrones," "Succession," and "The White Lotus." However, according to Raymond James analysts, over 70% of HBO Max customers in the US also subscribe to Netflix.
Warner Bros also owns a vast archive of films made over nearly 100 years — from classics like "Looney Tunes" and "Casablanca" to Harry Potter movies.
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