Paramount has made a hostile all-cash offer to buy Warner Bros. Discovery, creating a direct challenge to Netflix, which recently announced its own agreement to acquire the Hollywood studio.
The bidding war began in September, and Paramount is now making its sixth offer. The new offer values Warner Bros. Discovery at $108.4 billion, which Paramount says gives shareholders a better deal than Netflix’s nearly $83 billion proposal. Paramount also plans to buy cable channels such as CNN, TNT, TBS, and Discovery, and add them to its existing TV assets like CBS, MTV, and Comedy Central.
The deal is backed by Larry Ellison, one of the world’s richest investors, along with sovereign funds from Saudi Arabia, Qatar, and Abu Dhabi, and private equity firm Affinity Partners, founded by Jared Kushner.
Netflix’s bid caused strong reactions in Hollywood last week, with many worried about market control and the future of theatrical film releases.U.S. President Donald Trump said Netflix’s deal “could be a problem” and indicated he would be involved in government decisions regarding competition approval.
Paramount claims its offer would face fewer regulatory obstacles. It argues that Netflix would control about 43% of global streaming subscribers, possibly slowing down approval. Paramount also says the merger would create over $6 billion in savings, while keeping traditional theatrical movie releases, which many in Hollywood still consider important.
Warner Bros. Discovery shares jumped more than 7%, while Netflix shares fell over 3% after the news.
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