Netflix deal under fire as Paramount unveils massive $108bn offer for Warner Bros. Discovery

Paramount Skydance Corporation (NASDAQ: PSKY) has ignited a seismic shift in the global entertainment sector by launching a bold, all-cash tender offer to acquire all outstanding shares of Warner Bros. Discovery, Inc. (NASDAQ: WBD) for $30 per share, translating to a colossal enterprise value of $108.4 billion. This direct-to-shareholders move represents a stunning 139% premium to Warner Bros. Discovery’s undisturbed stock price as of September 10, 2025, and directly challenges the competing Netflix Inc. (NASDAQ: NFLX) proposal currently backed by Warner Bros. Discovery’s board.

The new Paramount Skydance offer is not just about headline-grabbing figures. It reflects a deep-rooted frustration with the Warner Bros. Discovery board’s decision to recommend the rival Netflix transaction, which Paramount characterizes as both structurally inferior and riddled with regulatory landmines. While Netflix’s proposal relies on a volatile mix of $23.25 in cash and $4.50 in stock per share, the all-cash nature of Paramount’s bid is pitched as a superior, more certain path for investors and the industry.

How does Paramount’s proposal compare to the Netflix bid and what’s at stake for Warner Bros. Discovery shareholders?

Paramount’s offer ups the ante by promising $18 billion more in cash than Netflix’s mix of equity and cash, targeting the full Warner Bros. Discovery portfolio including the critical Global Networks segment. The Netflix offer, by comparison, leaves shareholders saddled with a highly leveraged, sub-scale stub in Global Networks—a structure Paramount’s leadership bluntly argues is “unsupported by business fundamentals” and creates uncertain future trading value. The Netflix deal, valued at $27.75 per share and an enterprise value of $82.7 billion, comes with a complex equity component exposed to Netflix’s market swings and regulatory hurdles.

Paramount’s leadership, including Chairman and CEO David Ellison, is taking the gloves off, publicly accusing Warner Bros. Discovery’s board of ignoring six proposals over three months. Ellison’s position is that Warner Bros. Discovery shareholders deserve a clear, immediate opportunity to unlock value via a transaction that is straightforward, pro-consumer, and quick to close. He maintains that the Netflix agreement, which would combine the dominant Subscription Video on Demand (SVOD) player with Warner Bros. Discovery’s significant share, poses enormous anti-competition risks across major markets.

What regulatory and competitive hurdles could shape the final outcome of the Paramount–Warner Bros. Discovery battle?

At the heart of Paramount’s argument is a pledge for regulatory expedience. Paramount’s offer is built on the claim that the deal will promote rather than undermine competition, creating a “strong champion for creative talent and consumer choice.” Paramount contends that Netflix’s proposal will face intense scrutiny due to its potential to entrench a near-monopoly, particularly in Europe where Netflix already holds a dominant 43% SVOD market share. Analysts tracking the sector anticipate that such consolidation would trigger multi-jurisdictional investigations, risking deal fatigue and valuation erosion for Warner Bros. Discovery shareholders.

From a procedural perspective, Paramount’s tender offer has been unanimously approved by its board and is open until January 8, 2026, unless extended. Paramount has already submitted premerger notifications under the Hart-Scott-Rodino Antitrust Improvements Act and is ready to chase all regulatory approvals “expeditiously.” The deal’s $108 billion valuation is underpinned by $54 billion in committed debt from Bank of America, Citi, and Apollo, with additional equity backstopped by the Ellison family and RedBird Capital. Financial and legal advisors from Centerview Partners, RedBird Advisors, Cravath Swaine & Moore, and Latham & Watkins are guiding the transaction.

Why does Paramount believe its offer could redefine the future of Hollywood and global media competition?

Paramount’s vision for a combined entity is nothing short of transformative. The merger would create a “scaled Hollywood champion” able to compete globally, fuel new content creation, and retain top-tier creative talent. Paramount pledges to maintain and grow the theatrical slates of both studios while also investing in streaming, direct-to-consumer businesses, and sports rights such as the NFL, Olympics, UFC, and Champions League, ensuring distribution of this content across all platforms. The strategic roadmap also emphasizes the combined company’s ability to generate significant cash flow, realize $6+ billion in cost synergies, and improve efficiency across its expanded network.

Critically, Paramount’s pitch goes beyond financial engineering. It seeks to appeal to the creative community, movie theaters, and even policymakers by promising a more diversified, robust platform for content, a strong presence in live sports, and a steady pipeline for the global box office. The group’s partnership with Oracle for technology innovation is also cited as a future-proofing move.

What does sentiment and recent stock movement reveal about investor appetite for this mega-deal?

Warner Bros. Discovery shares have already reacted to the M&A drama, surging on news of the competing bids. The $30 per share offer represents a massive premium over pre-rumor levels. Institutional activity has been brisk, with investors repositioning around the likely outcomes. Paramount Skydance Corporation, newly formed after the Skydance merger, is also attracting attention as a potential creative juggernaut, though investors remain cautious given the scale of debt financing and the industry’s rapid shifts toward digital.

Sector analysts suggest that, should the Paramount offer succeed, it could prompt further consolidation among studios and streaming platforms, intensifying the global content arms race. Some warn of potential overhang from the heavy leverage required, while others see a unique opportunity for a reset in how Hollywood giants scale and diversify.

How could a Paramount–Warner Bros. Discovery merger reshape the streaming and sports rights landscape?

Paramount and Warner Bros. Discovery combined would create a direct-to-consumer powerhouse, challenging Netflix, Amazon, and Disney in both streaming and premium content. The combined direct-to-consumer footprint, anchored by Paramount+ and HBO Max, would offer consumers a formidable alternative at a time when pricing power, sports exclusivity, and original content are becoming increasingly vital for subscriber growth and retention.

The sports rights angle is especially compelling. Together, the merged group would control a premier portfolio of global rights, making it a magnet for both advertisers and sports fans. For the legacy cable networks and CBS, the deal promises renewed scale and cash flow resilience, supporting advertising innovation and cross-platform activations that are increasingly critical as linear television declines.

What are the critical next steps in the Paramount–Warner Bros. Discovery takeover process?

Paramount has set an aggressive timetable, with the tender offer expiring on January 8, 2026. The next weeks will see continued lobbying of Warner Bros. Discovery shareholders, ongoing regulatory discussions, and likely further public posturing from all sides, including Netflix and Warner Bros. Discovery’s existing board.

Stakeholders ranging from creative talent and unions to advertisers, sports leagues, and Wall Street should brace for rapid change and potentially more deal-making across the industry as rivals respond to this high-stakes move.

What are the key takeaways from Paramount’s all-cash bid for Warner Bros. Discovery and its potential impact on Hollywood?

• Paramount Skydance Corporation has launched a bold $30 per share all-cash tender offer for Warner Bros. Discovery, valuing the deal at $108.4 billion and offering a 139% premium over Warner Bros. Discovery’s undisturbed stock price as of September 10, 2025.

• The proposal goes directly to Warner Bros. Discovery shareholders after the board recommended a rival Netflix deal, which Paramount argues is structurally inferior and comes with more regulatory risk and a volatile equity component.

• Paramount’s offer includes $18 billion more in cash than the Netflix proposal and covers all of Warner Bros. Discovery, including the key Global Networks segment, aiming to give shareholders immediate value and a clear exit.

• Paramount is highly confident about securing regulatory approvals, positioning its offer as pro-competition and supportive of creative talent, consumer choice, and theatrical exhibition.

• Financing for the transaction is fully committed, with $54 billion in debt from Bank of America, Citi, and Apollo, and equity backstopped by the Ellison family and RedBird Capital, leaving no financing condition on the deal.

• If successful, the combination would create a global content powerhouse with scale in streaming (Paramount+ and HBO Max), a dominant sports rights portfolio, and an even stronger theatrical slate, increasing competitiveness against Netflix, Amazon, and Disney.

• Paramount promises to maintain and expand studio operations, invest in content, and realize $6+ billion in cost synergies alongside substantial standalone savings, supporting continued growth.

• Investor sentiment has been positive, with Warner Bros. Discovery shares rallying on news of the competing bids and institutional activity rising as investors position for potential outcomes.

• The deal sets a high bar for industry M&A, likely triggering further consolidation as studios and streaming platforms jockey for global scale, content libraries, and DTC leadership.

• Paramount has set a tender offer deadline of January 8, 2026, with all eyes on regulatory response, shareholder reactions, and possible escalation from rival bidders in what could be the most consequential Hollywood deal in years.