Highlights:
-
Paramount launches a hostile £85.7bn (₹8.57 lakh crore) cash-driven bid for Warner Bros Discovery
-
Move aims to block Netflix’s preferred-bidder position and disrupt its proposed takeover
-
Paramount says its offer includes £11.1bn (₹1.11 lakh crore) more cash and a clearer regulatory pathway
-
Financing support includes the Ellison family, RedBird Capital and entities tied to Jared Kushner
- Advertisement - -
Warner Bros Discovery board will review the proposal; no withdrawal of Netflix support so far
The takeover contest for Warner Bros Discovery intensified after Paramount issued a direct and hostile £85.7bn (₹8.57 lakh crore) offer aimed at stopping Netflix from moving ahead with its planned acquisition. The proposal, released publicly and addressed straight to Warner Bros shareholders, marks a sharp escalation only days after Netflix was identified as the preferred buyer for the studio.
Paramount positioned its bid as a full takeover of the entire Warner Bros Discovery group, covering HBO, the film studios and the cable networks. Its £23.7-per-share offer contrasts with Netflix’s deal, which is valued at roughly £51bn (₹5.1 lakh crore) in equity terms and centers primarily on the studios and the streaming business.
Why the Warner Bros Takeover Battle Shifted
Paramount said its package brings an additional £11.1bn (₹1.11 lakh crore) in cash compared with Netflix’s proposal. The company argued that merging two longstanding television and traditional media groups would raise fewer regulatory concerns in the US and Europe. In contrast, expanding Netflix — currently the largest global streamer — is expected to draw closer scrutiny.
According to Paramount, it approached Warner Bros Discovery several times in the past three months but received no meaningful engagement. The company said that silence prompted it to bring its offer directly to the market. The stock reaction was immediate. Shares in Warner Bros Discovery rose just over 4 percent on Monday, Paramount gained about 9 percent and Netflix slipped roughly 3 percent.
How Netflix Responded to Paramount’s Warner Bros Move
Netflix did not signal surprise at the development. Co-chief executive Ted Sarandos described the move as “entirely expected” and said the company still anticipates closing the deal under its existing agreement. He said concerns about Paramount’s planned integration and promised “synergies” raise the likelihood of job cuts, something Netflix says its own bid avoids by keeping HBO and the film operations operating largely as they are.
Analysts have warned that Netflix’s offer could face a thorough review because a merged entity would place more than 300 million subscribers under a single corporate structure. Warner Bros Discovery, which would owe Netflix a £1.7bn (₹17,000 crore) break fee if it switched sides, has instructed shareholders to “take no action” while the board evaluates the latest proposal.
Financing Behind Paramount’s Warner Bros Proposal
The Paramount offer is supported by the Ellison family, RedBird Capital and financing tied to Jared Kushner’s Affinity Partners. Middle Eastern sovereign funds are also involved in the structure. This combination has positioned the deal in the middle of political debate in Washington, with some Democratic senators expressing concern that the merger could grant too much influence to a single entity, particularly in children’s and sports programming.
President Donald Trump has commented from multiple viewpoints. He said the Netflix deal “could be a problem” due to competition concerns, but also criticized Paramount over coverage relating to his allies on 60 Minutes. Paramount has stated that it would maintain cinema releases and protect the HBO and studio operations. It also argued that Warner Bros’ plan to separate its cable networks into an independent entity could weaken those assets.
What Comes Next for Warner Bros Discovery?
The Warner Bros Discovery board has 10 days to respond to the Paramount bid. Both the Paramount and Netflix proposals will face extended regulatory evaluation in several markets. Analysts expect months of negotiations, public positioning and possible amendments to both offers. Neither outcome appears secure at this stage.
What remains certain is that Warner Bros — one of Hollywood’s most prominent and historically influential studios — is now at the center of a direct, highly competitive and politically sensitive takeover contest. The next steps will determine whether the studio aligns with Paramount, remains with Netflix or faces further reshaping as the process unfolds.
