Hollywood has been thrown into its fiercest corporate showdown in years after Paramount launched a surprise $108bn hostile bid to acquire Warner Bros Discovery (WBD), directly challenging Netflix’s already-announced $82.7bn agreement.

Paramount’s offer, an all-cash proposal valuing WBD at $30 a share, leans heavily on financial backing from Saudi Arabia, Abu Dhabi, and Qatar’s sovereign wealth funds. The deal is also being supported by Jared Kushner’s Affinity Partners, giving the bid political visibility that few entertainment mergers have ever carried.

David Ellison, Paramount’s chief executive, attacked Netflix’s proposal as “inferior”, and argued that only an all-cash acquisition would give WBD shareholders certainty in an industry facing consolidation pressure and regulatory scrutiny.

A Bid Designed to Disrupt

Paramount said the Ellison family and RedBird Capital are ready to backstop the entire $40.7bn equity requirement. Alongside that, Bank of America, Citigroup and Apollo have committed $54bn in debt financing, giving Paramount a fully funded pathway to close the deal without issuing new shares.

The move comes only a week after Netflix agreed to purchase WBD’s iconic studio assets, including the Harry Potter and DC Comics franchises, and its HBO Max streaming division in an $82.7bn carve-out that excludes cable brands such as Discovery and CNN.

Under Netflix’s plan, WBD shareholders would receive the cable assets next year via a spin-off. Analysts estimated the value of those businesses at roughly $4 a share, while Paramount controversially values them at just $1.

Regulatory Pressure Is the Real Battleground

The success of either bid may ultimately hinge on antitrust expectations. Netflix has projected 12 to 18 months to clear regulatory hurdles, a timeframe Paramount called “unrealistic”.

Netflix’s ownership of WBD’s studio and streaming assets would concentrate power in ways the industry has never seen before. Hollywood unions, trade groups, and even the White House have raised concerns about the impact on competition.

President Trump said over the weekend that Netflix’s expanding market share “could be a problem”, though he simultaneously praised CEO Ted Sarandos. Ellison has been more direct, warning that approving Netflix’s deal would “eliminate competition in Hollywood”.

Paramount emphasised that its Middle Eastern backers have agreed to waive governance rights, a move aimed at avoiding national-security reviews tied to foreign influence.

Shareholders Hold the Cards

WBD’s board responded cautiously, saying it would review Paramount’s proposal but would not withdraw its recommendation for the Netflix deal. The company promised a follow-up advisory to shareholders within ten business days.

Market reaction arrived swiftly:

• WBD shares rose 3.1%
• Paramount surged 7.9%
• Netflix slipped 4.4%

WBD shareholders have until January 8 to vote on Paramount’s tender offer, although that deadline can be extended. If the board abandons its agreement with Netflix, WBD may owe the streaming giant a $2.8bn break fee, one of the largest in media industry history.

A Deal Months in the Making

Sources close to the process say Paramount’s latest offer mirrors its final pitch during last week’s closed bidding round. WBD ultimately favoured Netflix because the streaming company was “most likely to secure regulatory approval” and could sign on terms the board considered airtight.

Paramount claims WBD barely engaged with its proposals and argues that taking the offer directly to shareholders is now the only route to advance what it calls a “clearly superior alternative”.

Netflix, meanwhile, is said to be comfortable with the White House and regulator conversations to date and is preparing to push ahead unless WBD formally reverses course.

The Future of Hollywood Hangs on the Outcome

This takeover battle arrives at a moment when the traditional studio model is being reshaped by streaming platforms and vertically integrated tech giants. If Netflix succeeds, a technology company will control one of the world’s most storied film and TV studios for the first time.

If Paramount prevails, Hollywood could see a more traditional consolidation path—but one backed by unprecedented international capital.

Either way, the decision will define the next chapter of the global entertainment economy.