Paramount ambushes Netflix with US$108.4B bid for Warner Bros. Discovery
Paramount bypasses the board, takes bigger all-cash bid directly to Warner Bros. Discovery shareholders
Paramount just threw a wrench into Netflix’s big win. Days after Warner Bros. Discovery (WBD) agreed to sell its studios and streaming business to Netflix for US$82.7 billion, Paramount returned with a hostile counteroffer worth US$108.4 billion.
The bid is not just bigger. It’s also going straight to shareholders, skipping WBD’s board entirely. Paramount is offering US$30 per share in cash for the entire company. In contrast, Netflix’s deal included only part of WBD and mixed cash with stock, totaling US$27.75 per share.
This article explores the high-stakes bidding war for WBD, the strategic differences between both offers, and what marketers should expect as two entertainment giants fight for the future of streaming and media power.
Short on time?
Here’s a table of contents for quick access:
- What just happened between Paramount, Netflix, and WBD
- Why Paramount's offer is stirring the pot
- The bigger picture: streaming wars, regulation, and market power
- What marketers should know
Falencia Naoenz
What just happened between Paramount, Netflix, and WBD
Paramount and Skydance have launched a hostile tender offer to buy all of Warner Bros. Discovery for US$30 per share, in a deal valuing the company at US$108.4 billion. The offer was made directly to shareholders after WBD’s board rejected similar terms last week and chose Netflix’s lower bid instead.
Netflix’s proposed deal includes only WBD’s studio and streaming divisions, excluding its Global Networks business. It also consists of a mix of US$23.25 in cash and US$4.50 in Netflix stock per share, amounting to a total value of US$82.7 billion.
David Ellison, Paramount’s CEO, criticized the Netflix deal for exposing WBD shareholders to uncertain stock value, regulatory hurdles, and an unstable Global Networks spinoff. He described Paramount’s bid as faster, simpler, and significantly more valuable.
Paramount’s financing is already locked in, with equity from the Ellison family and RedBird Capital, and US$54 billion in debt commitments from Bank of America, Citi, and Apollo. The company is confident it can push the deal through without the same regulatory delays Netflix is expected to face.
Why Paramount's offer is stirring the pot
On paper, Paramount is offering US$18 billion more in cash. But the differences go far beyond price. Here’s how the two offers stack up:
- Cash vs. mixed structure: Paramount’s deal is entirely cash. Netflix’s is partially tied to stock performance, adding volatility.
- Full company vs. partial carve-out: Paramount wants all of WBD, including the less glamorous Global Networks. Netflix only wants the content engine.
- Regulatory complexity: Paramount argues that its deal increases market competition. Netflix’s would consolidate two streaming giants, raising red flags in the US and Europe.
Antitrust concerns around the Netflix deal have already surfaced. President Donald Trump has commented that the merger “could be a problem” due to market share consolidation. Paramount is using this to build its case, claiming the Netflix proposal could lead to higher consumer prices, fewer theatrical releases, and more power concentrated in fewer hands.
Streaming wars, regulation, and market power
This isn’t just about two companies fighting over IP. It’s a broader shift in how entertainment is created, distributed, and monetized.
Netflix has never attempted a deal of this size. Its ability to integrate a major studio, navigate global antitrust hurdles, and avoid alienating creative talent is still unproven.
Paramount, on the other hand, is leaning into its legacy. The company promises to preserve theatrical releases, maintain WBD’s creative output, and offer a stronger multi-platform advertising ecosystem. The combined entity would own:
- Paramount+ and HBO Max under one roof
- Rights to key global sports including NFL, UFC, and Champions League
- Theatrical production pipelines from both studios
- A diversified TV and cable portfolio with improved ad sales capabilities
This could turn Paramount into a stronger content and distribution engine, offering more consistent touchpoints for advertisers and brand partners.
What marketers should know
Whether the deal goes to Netflix or Paramount, change is coming. Here’s what to watch:
1. Consolidation will reshape the ad landscape
If either deal goes through, expect fewer major players in premium streaming. This means tighter ad inventory, higher CPMs, and increased pressure on media buying strategies.
2. The ad-supported streaming race is accelerating
Paramount’s offer could expand the reach of Paramount+ and HBO Max’s ad-supported tiers. Marketers should prepare for new bundled ad offerings across platforms like CBS, cable, and DTC.
3. Regulatory outcomes could impact access and pricing
If regulators block or alter the Netflix deal, we could see tighter rules on streaming mergers moving forward. Marketers should stay alert to how content access and licensing may shift under new ownership.
4. Time to diversify media strategy
Marketers overly dependent on Netflix or WBD’s platforms should hedge bets now. This includes revisiting partnerships, experimenting with smaller platforms, and focusing on first-party data strategies.
Paramount’s hostile move is a bold bet on the future of content, audience reach, and streaming monetization. Whether WBD shareholders bite or not, the next few months will reshape how brands engage with media platforms.
Marketers should treat this moment not just as industry drama, but as a signal. It’s time to revisit media plans, double-check platform dependencies, and get ahead of whatever streaming looks like next.
