Highlights:
- Paramount makes a hostile £85.7bn (₹8.57 lakh crore) push for Warner Bros Discovery
- Move attempts to stop Netflix’s planned takeover of the studio and HBO networks
- Paramount bid claims to offer £11.1bn (₹1.11 lakh crore) more cash and clearer regulatory path
- Financing includes Ellison family backing and firms linked to Jared Kushner
- Warner Bros board to review offer but has not withdrawn support for Netflix
The Paramount bid for Warner Bros Discovery has taken a sharp turn after the studio launched a hostile £85.7bn (₹8.57 lakh crore) move aimed at blocking the rival Netflix takeover. The offer, pitched straight to Warner Bros shareholders, arrived just days after Netflix was declared the preferred buyer for the historic film and television group.
Paramount’s hostile Warner Bros Discovery bid jolts Netflix deal AI Generated Gemini
Why the Paramount bid changed the takeover race
Paramount’s £23.7-per-share proposal covers the entire Warner Bros Discovery business, from HBO to the cable networks. Netflix’s deal, worth roughly £51bn (₹5.1 lakh crore) in equity terms, focused mainly on the studios and streaming arm.
Paramount said its package brings £11.1bn (₹1.11 lakh crore) more cash and fewer regulatory hurdles. It argued that combining two traditional television groups, rather than enlarging Netflix, would be easier for US and European regulators to approve.
Paramount said it had approached Warner Bros several times over the past three months, but the studio did not respond in any meaningful way. That lack of engagement led Paramount to make its bid public. The stock market reacted immediately. Warner Bros shares rose just over 4% on Monday, Paramount climbed 9%, while Netflix slipped about 3%.
Paramount PicturesInstagram/paramountpics
How Netflix responded
Netflix appeared unsurprised. Co-chief executive Ted Sarandos called the move “entirely expected” and said the streamer still expects the takeover to close. He pointed to fears that Paramount’s promised “synergies” would likely lead to job cuts. Netflix insists its plan avoids that by keeping the studio and HBO operations largely intact.
But analysts have warned that Netflix’s offer will face close scrutiny because of the impact on streaming competition. A merged group would bring more than 300 million subscribers under one company. Warner Bros, which must pay Netflix a £1.7bn (₹17,000 crore) break fee if it switches sides, has told shareholders to “take no action” while it reviews the latest offer.
Netflix responded to the Paramount bid for Warner Bros DiscoveryGetty Images
Who is backing the Paramount offer and why politics is now in play
Paramount’s bid is backed by the Ellison family, RedBird Capital and financing linked to Jared Kushner’s Affinity Partners. Middle Eastern sovereign funds are also involved. This has drawn political attention in Washington. Some Democratic senators warned the deal could give a single group too much power over US television, especially in sport and children’s programming.
President Donald Trump has commented from both sides. He warned the Netflix deal “could be a problem”, citing competition concerns, but also criticised Paramount over its 60 Minutes coverage of his allies. Paramount has stressed it would protect cinema releases and keep HBO and the film studio structure intact. It also argued that Warner Bros’ plan to spin off its cable networks into a separate company would weaken those businesses.
Warner Bros DiscoveryInstagram/wbd
What next for Warner Bros Discovery?
The board has 10 days to respond. Both deals face long regulatory timelines. Analysts expect months of arguments, more public lobbying and possible tweaks to the offers. At this point, neither path is secure. The only certainty is that one of Hollywood’s most powerful studios is now at the centre of an unusually direct and political takeover fight.
