The battle for Warner Bros. Discovery (WBD) has intensified, with Paramount Skydance launching a hostile takeover bid valued at $108.4 billion, challenging Netflix's existing $82.7 billion agreement to acquire Warner's streaming and movie assets. This move throws a wrench into the deal between Netflix and Warner Bros.
The Offers on the Table
Netflix's offer, which was agreed upon on Friday, December 5, 2025, values Warner Bros. Discovery at an enterprise value of $82.7 billion, with a $72 billion equity value. The deal proposes a price of $27.75 per share for post-split Warner Bros. shares. This arrangement would see WBD shareholders receive $23.25 in cash and $4.50 in Netflix common stock for each share of WBD common stock owned at the closing of the transaction. As part of the agreement, Netflix would acquire Warner Bros.' film and television studios, HBO Max, and HBO. However, Warner's cable channels, such as CNN, TNT, and HGTV, are excluded. Prior to the Netflix deal, WBD had planned to split its studio and streaming operations from its global networks division, with the latter becoming a separate entity named Discovery Global.
Paramount Skydance's unsolicited bid, launched on Monday, December 8, 2025, presents an all-cash offer of $30 per share, totaling approximately $78 billion in equity value. Including the assumption of Warner Bros. Discovery's debt, the enterprise value reaches $108.4 billion. Paramount Skydance asserts that its offer provides $18 billion more in cash than Netflix's bid. The bid is supported by the Ellison family, RedBird Capital, PIF, QIA, and Affinity Partners, along with debt financing from Bank of America, Citigroup, and Apollo Global Management. David Ellison, CEO of Paramount Skydance, stated that WBD shareholders deserve the opportunity to consider their "superior all-cash offer" for the entire company. Paramount Skydance's offer is for the entirety of WBD, including its Global Networks segment.
Strategic Implications
The acquisition of Warner Bros. Discovery would have significant implications for both Netflix and Paramount. For Netflix, it would consolidate its position as a streaming giant, adding iconic franchises like "Harry Potter" and the DC Universe to its content library. Analysts estimate that the merged entity could control well over a third of the U.S. streaming market. David Zaslav, president and CEO of WBD, believes that combining the two companies would create a powerhouse capable of delivering beloved entertainment to a wider audience.
Paramount Skydance argues that its offer presents a more certain and quicker path to completion. However, analysts point out that Paramount's offer carries its own risks, including the additional debt required to finance the transaction. Moreover, a merger between Paramount and Warner Bros. Discovery would likely face intense antitrust scrutiny due to the consolidation of two major television operators.
The Road Ahead
The Warner Bros. Discovery board has acknowledged receipt of Paramount's offer and stated that it will be reviewed. However, as of Monday afternoon, the board had not modified its recommendation regarding the Netflix deal. David O'Hara, managing director at MKI Global Partners, noted that Warner Bros. Discovery shareholders face a choice between Paramount Skydance's all-cash offer and Netflix's more complex bid, both of which raise antitrust concerns. The outcome of this bidding war will reshape the media landscape and determine the future of some of Hollywood's most iconic studios and franchises. The successful acquisition is expected to close between late 2026 to early 2027.
