Paramount’s $108B Blockbuster Bid Crashes Netflix’s Streaming Party - Warner Bros. (WBD) Stock in Spotlight

Hollywood just dropped a plot twist no one saw coming. Paramount's staggering $108 billion takeover bid for Warner Bros. has sent shockwaves through the streaming wars, turning a quiet Tuesday into a boardroom thriller.

The New Streaming Heavyweight

Forget subscriber churn and content budgets—this is a full-scale empire-building move. Paramount isn't just entering the arena; it's trying to buy the stadium. By merging libraries, studios, and global reach, the combined entity would instantly become a top-tier contender, capable of going toe-to-toe with the established giants. It's a power play that redefines the competitive landscape overnight.

Netflix's Party Gets Crashed

The timing couldn't be more symbolic. Just as Netflix celebrates another quarter of dominance, a potential new titan emerges from the wings. This bid isn't merely an acquisition; it's a direct challenge to the streaming throne. It signals that the battle for your living room is far from over, and the next phase will be fought with balance sheets as much as binge-worthy shows. A cynical observer might note it's classic corporate strategy: when you can't out-innovate, out-consolidate.

The $108 Billion Question

All eyes are now on Warner Bros. Discovery's board and shareholders. Do they cash in on this premium offer, or hold out for an independent future in an increasingly consolidated market? The sheer size of the bid—$108 billion—sets a breathtaking valuation benchmark for the entire sector, putting every other media asset in a new light. It's a number that makes even the most bullish analyst pause.

One thing's clear: the streaming endgame just got a lot more interesting, and expensive. The fight for supremacy is no longer just about the next hit show—it's about who owns the studio that makes it.

TLDR

• Paramount Skydance offered $108.4 billion cash for Warner Bros. Discovery, outbidding Netflix’s $72 billion deal from Friday
• The $30 per share all-cash proposal is backed by the Ellison family and RedBird Capital, with Middle Eastern investors waiving governance rights
• Netflix’s deal splits WBD into two companies, while Paramount wants to buy everything in one transaction
• Trump voiced antitrust concerns about Netflix controlling a third of US streaming if that deal closes
• Paramount CEO David Ellison hinted the company could bid even higher than $30 per share

Paramount Skydance threw down a $108.4 billion gauntlet Monday. The all-cash offer for Warner Bros. Discovery values shares at $30 each, beating Netflix’s Friday announcement by a wide margin.

Warner Bros. Discovery stock climbed 7% on the news. Paramount shares gained over 6%. Netflix fell more than 4%.

Warner Bros. Discovery, Inc., WBD

The timing is deliberate. Netflix agreed to acquire WBD’s studios and streaming assets for $72 billion just three days earlier. That deal valued shares at $27.75, mixing $23.35 cash with $4.50 in Netflix stock.

Paramount tried three times before to buy Warner Bros. Discovery. The company bid $58 billion in October at $20 per share. CEO David Zaslav rejected all previous offers as too low.

This time Paramount came prepared. The Ellison family and RedBird Capital committed to fund 100% of the $40.7 billion equity needed. Larry Ellison, Oracle’s founder and executive chairman, is backing his son David’s play.

Bank of America, Citi, and Apollo Global Management lined up $54 billion in debt financing. The structure is straightforward compared to earlier bids that relied on multiple funding sources.

Why This Deal Differs From Netflix’s Approach

Netflix’s plan splits Warner Bros. Discovery into pieces. The streaming company gets the film studios, TV production, HBO, and HBO Max. Everything else spins off into Discovery Global, a separate public company launching in mid-2026.

That spinoff includes CNN, TNT Sports, and Discovery Channel. Paramount CEO David Ellison values those assets at $1 per share. Warner Bros. Discovery executives privately estimate $3 per share.

Paramount wants the whole enchilada. One company, one transaction, no spinoffs.

“We are offering shareholders $17.6 billion more cash than the deal they currently have signed up with Netflix,” Ellison told CNBC Monday. He texted Zaslav that $30 per share isn’t the final number, leaving room to go higher.

Middle Eastern sovereign wealth funds are involved in Paramount’s financing. Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company, and Qatar’s Qatar Investment Authority committed equity. Jared Kushner’s Affinity Partners joined them.

The twist: all agreed to zero governance rights. No board seats, no voting power. This structure keeps the Committee on Foreign Investment in the U.S. out of the approval process.

Regulatory Concerns Cloud Both Deals

Netflix faces serious antitrust questions. A combined Netflix-WBD WOULD control roughly one-third of US streaming activity, according to JustWatch data.

President TRUMP weighed in Sunday. “Well, that’s got to go through a process, and we’ll see what happens,” he said. “But it is a big market share. It could be a problem.”

The Justice Department will review whether the Netflix merger concentrates too much market power. Both company boards approved the deal, but federal regulators get the final say.

Paramount positioned its offer as cleaner and more certain. The company argues Netflix exposes shareholders to stock volatility and a lengthy multi-country regulatory review with unclear outcomes.

Ellison sent a revised $30 per share bid on December 1 after Warner Bros. Discovery requested changes to earlier proposals. Zaslav never responded, according to Ellison, prompting Monday’s hostile approach directly to shareholders.

The Netflix deal valued WBD’s total assets at $72 billion. Paramount’s $108.4 billion offer represents a 50% premium. Ellison maintains Paramount can go higher still if needed to win shareholder support.