Paramount Counters Netflix Deal, Offers Warner Bros. Discovery $108 Billion

Vanessa Obioha

Days after Netflix announced its plan to acquire Warner Bros. Discovery for nearly $83 billion, including debt, Paramount has launched a dramatic counteroffer, setting up what could become one of the biggest takeover battles in Hollywood history.

On Monday, the company said it would take its $30-per-share all-cash bid directly to Warner Bros. Discovery shareholders. The offer, which includes the company’s Global Networks business, values the entire group at $108 billion. Paramount also urged Warner Bros. Discovery to reject Netflix’s proposal.

“We believe our offer will create a stronger Hollywood,” David Ellison, Paramount’s chief executive, said in a press release. “It is in the best interests of the creative community, consumers and the movie theatre industry.”

Paramount added that it had submitted six proposals to Warner Bros. Discovery over the past 12 weeks. The company argued that Netflix’s offer would subject shareholders to a prolonged, multi-jurisdictional regulatory approval process with an uncertain outcome, involving a volatile mix of cash and equity.

It remains unclear whether Paramount’s move will derail Netflix’s ambitious plan to acquire Warner Bros. Discovery—a deal that would include its storied movie studio and HBO Max. In Nigeria, Netflix has already added two HBO Max original titles, Love & Death and The Staircase, to its upcoming slate.

The escalating bidding war has stirred anxiety in Hollywood. On Sunday, President Donald Trump, while praising Netflix’s co-chief executive Ted Sarandos, noted that the company held a “very big market share” and added that he would be “involved” in the regulatory review.

According to documents filed with federal regulators and cited by The New York Times, if Paramount’s bid ultimately prevails because Netflix fails to secure regulatory approval, Netflix would owe Warner Bros. Discovery a $5.8 billion breakup fee. Conversely, if Warner Bros. Discovery accepts a superior unsolicited bid from Paramount or another rival, it would be required to pay Netflix $2.8 billion.