In a move straight out of a Hollywood thriller, Paramount Global (now merged with Skydance and controlled by 38-year-old billionaire heir David Ellison) has launched a dramatic hostile takeover bid for all of Warner Bros. Discovery (WBD), blowing past the $72 billion agreement Netflix thought it had locked up just 72 hours earlier.
The all-cash $30-per-share tender offer – valuing the entire company between $74 billion and $108 billion depending on debt assumptions – represents the most aggressive escalation yet in what has become the entertainment industry’s most expensive and chaotic auction in history.
How We Got Here: A Six-Month Rollercoaster
The saga began in mid-2024 when Warner Bros. Discovery, still struggling with the after-effects of the disastrous 2022 AT&T-Discovery merger, quietly put itself up for sale. CEO David Zaslav, facing a mountain of $39 billion in net debt and a stock price that had lost more than 70% of its value since the merger, concluded that WBD could not survive as a standalone company in the streaming wars.
Initial talks focused on selling pieces: NBCUniversal circled the cable networks, Apollo Global Management eyed the studios, and private buyers sniffed around HBO. But by spring 2025, the conversation shifted to selling the entire company – or at least the “good” parts (Warner Bros. studio, HBO, DC Comics, Harry Potter, and the Max streaming service).
Three serious bidders emerged:
- Netflix – desperate to secure premium IP and end its reliance on licensed content.
- Paramount-Skydance – fresh off its own $28 billion merger in July 2024, backed by Larry Ellison’s near-bottomless Oracle fortune.
- A dark-horse consortium involving Comcast and private equity that ultimately bowed out.
For months, Paramount-Skydance was the frontrunner. David Ellison, who grew up on movie sets and idolized the Warner Bros. lot, wanted to create a new “studio for the 21st century.” His earlier bids hovered around $28–$30 per share and included the entire company – cable networks and all.
Then Netflix stunned the industry on December 5, 2025, by announcing a complex $72 billion transaction that would acquire only the studio and streaming assets while spinning the cable networks (CNN, TNT Sports, Discovery Channel, HGTV, Food Network) into a separate public company. Netflix’s pitch: cleaner regulatory path, immediate liquidity for shareholders, and a premium valuation.
WBD’s board, led by chairman John Malone’s allies, accepted the Netflix deal almost instantly, rejecting Paramount’s identical $30 cash offer as “inferior” because it included the unwanted cable networks.
The Hostile Counter-Attack
That rejection lit a fuse under David Ellison.
On Monday morning, December 8, Paramount-Skydance went directly to WBD shareholders with a hostile tender offer at $30 cash per share for 100% of the company – no spin-offs, no stock consideration, no regulatory gymnastics. The bid is fully financed by a consortium that now includes:
- RedBird Capital (already a Paramount investor)
- Abu Dhabi’s Mubadala and Qatar Investment Authority
- Saudi Arabia’s Public Investment Fund (PIF)
- Jared Kushner’s Affinity Partners (a late and controversial addition)
The group launched a slick website, StrongerHollywood.com, and began running full-page ads in the Wall Street Journal, Variety, and the Hollywood Reporter accusing the WBD board of running a “rigged” and “tainted” process designed to favor Netflix management.
Comparing the Two Offers Side-by-Side
| Metric | Netflix Deal (Dec 5) | Paramount-Skydance Hostile Bid (Dec 8) |
|---|---|---|
| Price per WBD share | $27.75 ($23.25 cash + $4.50 NFLX stock) | $30.00 all cash |
| Total headline value | $72 billion (studio/streaming only) | $74–$108 billion (entire company) |
| Assets acquired | Warner Bros., HBO, Max, DC, Harry Potter | Everything (including CNN, TNT, Discovery) |
| Regulatory risk | Extremely high (DOJ/FTC likely to block) | Moderate (larger but more diversified) |
| Closing timeline | 12–18 months (if approved) | 6–9 months |
| Breakup fee if blocked | $5.8 billion payable to Netflix | None (hostile tender) |
| Political support | Weak (Trump called it “a problem”) | Strong (Trump publicly endorsed Ellison bid) |
The Political Wild Card
President Donald Trump, in a Truth Social post Sunday night, wrote: “The Netflix deal is BAD for America – too much power in too few hands. David Ellison’s offer is MUCH better. I’ll be involved.” The statement sent WBD shares spiking in after-hours trading and instantly turned a corporate transaction into a geopolitical spectacle.
Democratic senators, led by Elizabeth Warren, meanwhile demanded the DOJ block either transaction on antitrust grounds, though many analysts believe a full-company sale to Paramount-Skydance would face far fewer hurdles than a Netflix combination that would control roughly 45–50% of U.S. premium streaming market share.
What Happens Next
WBD shares opened up 11% Monday morning, trading above $31 – well over both bids – signaling investors expect an even higher offer or a negotiated settlement.
The company’s board now faces an impossible choice:
- Stick with Netflix and risk shareholders tendering to Paramount (triggering a $2.8 billion breakup fee to Netflix).
- Re-open negotiations and try to extract a higher price from Netflix.
- Cut a new deal with Paramount-Skydance that gives Netflix a matching right or a large termination fee.
Goldman Sachs and J.P. Morgan, advising WBD, have called an emergency board meeting for Tuesday. Meanwhile, David Ellison is reportedly already walking the Warner lot in Burbank with architects, dreaming of the studio he has wanted since childhood.
As one veteran agent put it Monday morning: “This isn’t just about money anymore. It’s Succession in real life – with $100 billion and the future of movies on the table.”
The bidding war is far from over.