Paramount Launches $108B Hostile Bid for WBD

Media giant Paramount has initiated a hostile takeover bid valued at $108.4 billion for Warner Bros. Discovery (WBD), directly challenging a prior agreement between WBD and Netflix. This significant all-cash offer, announced on December 8, 2025, aims to acquire the entirety of WBD, including its diverse portfolio of content and distribution channels.

cbsnews.com reported, The bid comes just three days after Netflix secured a deal to purchase WBD's streaming and studios assets for $82.7 billion, a transaction that would have seen WBD's linear networks spun off. Paramount's offer of $30 per share in cash significantly surpasses Netflix's $27.75 per share, which was a joint cash-stock proposal.

Paramount Skydance CEO David Ellison stated that WBD shareholders deserve to consider their "superior all-cash offer," which he believes provides greater value and a clearer path to completion. The company argues its proposal would also face an easier regulatory approval process compared to a Netflix-WBD merger.

wikipedia.org noted, WBD's board confirmed it is reviewing Paramount's unsolicited offer but has not yet altered its recommendation regarding the Netflix deal, advising shareholders to take no immediate action. This move intensifies a complex bidding war that has been unfolding over recent months for the future of Warner Bros. Discovery.

Financing for Paramount's substantial bid is backed by the Ellison family, RedBird Capital, and several Middle Eastern sovereign wealth funds, including those from Saudi Arabia, Qatar, and Abu Dhabi. Additional debt financing is reportedly secured from major financial institutions like Bank of America, Citigroup, and Apollo Global Management.

businesstimes.com.sg reported, The aggressive nature of this bid highlights a growing trend of consolidation within the media industry, as companies vie for market share in a rapidly evolving entertainment landscape. Analysts suggest that Paramount's move is a strategic attempt to create a formidable media powerhouse capable of competing with industry leaders.

This high-stakes corporate battle is expected to reshape the global media industry, potentially leading to a major consolidation of content and distribution channels. The outcome will have significant implications for consumers, content creators, and the competitive dynamics of streaming and traditional media.

• Background to the Bidding War: Warner Bros. Discovery has been a target for acquisition since late 2025, drawing interest from multiple entertainment companies. The WBD Board announced in October 2025 that it would consider various options beyond its initial plans to split the company. Netflix, Paramount Skydance, and Comcast all submitted bids by November 20, 2025, with Netflix emerging as the frontrunner by early December before Paramount's hostile bid.
• Details of Paramount's Offer: Paramount's all-cash bid values WBD at $108.4 billion, or $30 per share, for the entire company. This includes all WBD assets such as its film and television studios, HBO, the Max streaming platform, cable properties like CNN and TBS, and its gaming division. Paramount asserts its offer provides $18 billion more in cash than Netflix's proposal, which focused primarily on WBD's streaming and studios division.
• Regulatory and Antitrust Implications: Both the Netflix-WBD and Paramount-WBD deals face significant regulatory scrutiny. Paramount has argued that a merger between Netflix and WBD would create a near-monopoly with a 43% global SVOD market share, posing substantial antitrust concerns. Conversely, Paramount's bid, while also large, is positioned as pro-competitive and enhancing consumer choice, though it may still face review over film library dominance.
• Historical Context of Hostile Takeovers: Hostile takeovers, though less common now than in the 1980s, are characterized by an acquiring company appealing directly to shareholders, bypassing the target's management. Notable historical examples include Vodafone's acquisition of Mannesmann and Oracle's takeover of PeopleSoft. Academics estimate the success rate of hostile bids between 20% to 40% over the past two decades, indicating the challenging nature of such endeavors.
• Financial Health of the Companies: Paramount Global reported a strong Q2 2025 with an earnings per share (EPS) beat and 15% growth in direct-to-consumer revenue, driven by Paramount+ subscriber growth. Warner Bros. Discovery, meanwhile, reported modestly increased total revenues in Q2 2025, boosted by theatrical releases, but faced a net loss in Q3 2025 despite an increase in streaming subscribers.
• Political and Shareholder Influence: The political landscape could play a role, with US President Donald Trump reportedly expressing concerns about the Netflix deal's impact on competition. Some of Paramount's bid financiers have close ties to the President, potentially influencing the regulatory environment. Investor Mario Gabelli has indicated a high likelihood of tendering his clients' WBD shares to Paramount Skydance, signaling potential shareholder support for the higher cash offer.
• Potential Future Developments: If WBD accepts Paramount's offer, it would be liable for a $2.8 billion breakup fee to Netflix. Conversely, Netflix would owe WBD $5.8 billion if its deal falls apart, one of the largest breakup fees ever. The situation remains fluid, with the possibility of Netflix sweetening its offer or Paramount raising its bid further, as reported by the New York Post on December 11, 2025.
• Impact on the Media Landscape: This potential merger underscores the ongoing consolidation in the media and entertainment industry, driven by the "streaming wars" and the quest for scale and intellectual property. Experts predict that 2025 will see more deal partnerships and bundling as companies seek to create "central hubs" for content distribution, reflecting a shift from speed to precision in media M&A activity.