The takeover battle for Warner Bros Discovery has taken another turn, with Paramount Skydance forcing its way back into the spotlight. Days after Netflix was declared the preferred bidder, Paramount has returned with a direct offer to shareholders that dwarfs the streamer’s winning proposal and threatens to blow the entire process open again.
Paramount is offering $30 a share for the whole of Warner Bros, valuing the company at more than $108bn. It is a dramatic escalation from a suitor that had been pushed aside only last week. The bid includes the film studio, the HBO streaming network and the traditional television channels that Warner Bros plans to spin off into a separate company.
The Ellison-backed group argues that its proposal is a superior alternative to Netflix’s $83bn deal. It says shareholders get more cash upfront and that its takeover stands a better chance of getting through regulators, who are already circling Netflix’s plan.
President Trump waded in over the weekend, saying there “could be a problem” with Netflix taking over such a large rival. That comment alone has reshaped expectations about how long and difficult the approval process might be.
Paramount’s offer is hostile and aggressive. It is also politically charged. Larry Ellison and his son David Ellison, who runs Skydance, have long-standing ties to Trump. Jared Kushner has appeared in the financing paperwork filed with regulators. The expectation on Wall Street was that these connections could smooth the path for a Paramount deal, especially compared with a global giant like Netflix.
Warner Bros initially dismissed those expectations and opted for Netflix’s offer last week, calling it the best route for shareholders after months of bidding. That decision triggered a rally in Warner Bros shares and a drop in Netflix stock as investors tried to price in the regulatory risk.
Paramount is now testing that logic. Its higher valuation forces Warner Bros to reconsider, and it also complicates the industry’s politics. Analysts say a Netflix takeover would revive concerns about one company gaining too much power over streaming. A Paramount deal would raise different questions about influence over sports rights, children’s TV and the future of traditional broadcasters.
David Ellison has spent the past 48 hours arguing that Netflix’s acquisition would be bad for the entire entertainment industry. He says actors, producers and studios would be left at the mercy of a single dominant buyer. He also criticised Warner Bros’ plan to spin off CNN and its other networks, calling the new standalone business unworkable.
The market has taken notice. Warner Bros shares rose more than 3% as investors weighed the prospect of a bidding war. Paramount shares also climbed. Netflix moved in the opposite direction as the chances of an uncomplicated takeover slipped away.
The next move belongs to Warner Bros. The company must now decide whether Paramount’s higher price offsets the risks attached to its political alignments and its sprawling plan. A week ago the Netflix deal looked settled. Now the fight is very much alive again.