Paramount launches rival bid for Warner Bros Discovery – directly competing with Netflix

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Okay, so I just heard some crazy news! Netflix is set to buy a huge chunk of Warner Bros. Discovery – think all their movies, TV shows, HBO Max, and HBO itself. But now, it looks like Paramount, backed by Skydance, is making its own offer to try and snag Warner Bros. Discovery too! It’s getting interesting, and as a movie lover, I’m definitely keeping an eye on this whole situation.

David Ellison leads Paramount Skydance, a company formed earlier this year by the merging of Paramount Global and Skydance Media. He has long expressed interest in buying Warner Bros.

Back in October, Warner Bros Discovery turned down an offer to be acquired by Paramount Skydance. This happened before Netflix and Comcast also entered the competition to buy the company, leading to a bidding war.

Last week, Warner Bros Discovery and Netflix finalized their agreement, a deal valued at almost $83 billion.

Paramount Skydance has made an offer to buy Warner Bros Discovery, bypassing the company’s management and appealing directly to its shareholders. They’re offering $30 per share for the entire company, including the traditional TV networks that aren’t part of their agreement with Netflix.

Paramount Skydance believes it can offer a better deal than Netflix, and thinks it’s more likely to be approved by regulators.

Over the weekend, President Trump suggested that Netflix’s dominance in the streaming market, especially when combined with the content from Warner Bros. Discovery, might violate antitrust laws and create a competition issue.

Netflix and Warner Bros Discovery announced on Friday that their boards approve of Netflix acquiring Warner Bros Discovery. The deal is planned for 2026 or 2027, after Warner Bros Discovery separates some of its businesses into a new, independent company.

Warner Bros. owns major film and TV franchises like The Lord of the Rings, Harry Potter, and the DC Universe. Other popular shows and movies under their ownership include Game of Thrones and Friends.

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Paramount Skydance announced its offer for Warner Bros. Discovery, stating that it would give shareholders $18 billion more cash compared to a potential deal with Netflix.

Warner Bros. Discovery’s board chose the deal with Netflix over Paramount because they overestimated the value of their Global Networks business. This valuation doesn’t align with the company’s actual performance and relies on a significant amount of debt.

Ellison stated that Warner Bros. Discovery shareholders should have the chance to review their offer to buy the entire company with cash. He emphasized that their offer – the same one previously presented to the Warner Bros. Discovery board – provides better value and a faster, more guaranteed completion process.

We think the Warner Bros. Discovery board is considering a deal that isn’t in the best interest of shareholders. This deal would give them a combination of cash and stock, relies on the unpredictable value of their cable TV business, and faces potential hurdles with regulatory approval.

We’re reaching out to shareholders directly so they can make the best possible decision for themselves and get the most value from their stock.

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2025-12-08 19:04