Paramount Attempt to Snatch Warner Bros. from Netflix With Hostile Takeover Bid

Despite signals from David Zaslav and Ted Sarandos that a deal to buy Warner Bros. is finalized – particularly after comments from Donald Trump – Paramount is determined to compete for ownership of one of Hollywood’s biggest studios.

Netflix recently outbid Paramount in negotiations to merge with Warner Bros., in a deal potentially worth $82.7 billion. Although the merger has faced opposition, notably from the Writers Guild of America, it now faces a new challenge. Paramount has made an unexpected offer to buy Warner Bros. directly, launching what’s known as a hostile takeover.

According to The Hollywood Reporter, Netflix and Warner Bros. Discovery’s plans may be complicated by a new offer from Paramount. Paramount has presented its shareholders with a cash deal that’s significantly better than the one Netflix proposed, and shareholders have accepted it.

Paramount claims its offer to buy Warner Bros. Discovery (WBD) would give shareholders $18 billion more cash than Netflix’s offer. Paramount argues that WBD’s decision to favor the Netflix deal is based on an unrealistic and financially risky assessment of its Global Networks business.

Paramount Is Urging WBD Shareholders to Look After Their Interests


Paramount

David Ellison, a top executive at Paramount, has been reaching out to shareholders, encouraging them to carefully evaluate their current offer instead of accepting what he considers a less favorable deal from Netflix. He believes their offer is stronger.

Warner Bros. Discovery shareholders should have the chance to review our offer to buy all their shares. We’ve made our offer – the same one we presented to the WBD board – publicly available, and we believe it offers better value and a faster, more certain outcome. We’re concerned the board is considering a deal that would give shareholders a combination of cash and stock, expose them to the risks of a fluctuating stock price for the cable business, and face a difficult regulatory review. By taking our offer directly to shareholders, we’re giving them the power to decide what’s best for their investment and get the highest possible value for their shares.

The report indicates that Paramount’s offer significantly surpasses Netflix’s $83 billion bid, potentially reaching around $108 billion with substantial financial backing from wealth funds in Saudi Arabia, Qatar, and Abu Dhabi. Paramount also aims to finalize the deal within a year, which is faster than the 12-18 months Netflix anticipated. While Netflix and Warner Bros. previously appeared to have a straightforward path forward with only legal matters remaining, Paramount is continuing to compete aggressively.

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2025-12-08 20:05