Paramount Makes $108 Billion Offer for Warner Bros. After Netflix Agreement

The competition to acquire Warner Bros. has intensified, as Paramount has submitted a $108 billion cash bid to purchase the entertainment giant, following a recent agreement between Warner Bros. and Netflix. The move adds a new dimension to the high-stakes contest for control of one of the world's leading film and television companies.

Paramount's proposal is aimed directly at Warner Bros. shareholders, offering $30 per share in cash. This represents a higher value than the previously announced Netflix deal, which had been structured to provide shareholders with a combination of cash and Netflix stock, collectively valued at $27.75 per share. Paramount has positioned its offer as not only more financially attractive, but also more secure, citing fewer regulatory uncertainties and a faster potential closing process.

The company argues that the Netflix proposal carries significant risks due to the volatility of stock-based consideration and the potential for antitrust concerns. Should the Netflix-Warner Bros. merger proceed, the combined company would reach an estimated 43% share of the global streaming market--a figure that could attract scrutiny from competition authorities in multiple jurisdictions. Additionally, Paramount notes that Netflix has limited experience in executing large-scale acquisitions, contrasting it with Paramount's own recent history of successful mergers and acquisitions, including its $8 billion merger with Skydance completed earlier in the year.

Paramount's bid is comprehensive, seeking to acquire all of Warner Bros. Discovery, which includes not only the film and streaming businesses but also news assets such as CNN and TNT. In comparison, the Netflix offer is reported to focus solely on the studio and digital streaming operations, excluding the news division. Paramount's all-encompassing approach would see the entire Warner Bros. portfolio integrated into its operations.

The offer from Paramount is valid until January 8, 2026, with the possibility of extension. Warner Bros. and Netflix had previously outlined a timeline to complete their transaction by the third quarter of 2026. Paramount has disclosed that it has made multiple approaches to Warner Bros. Discovery management over recent months, submitting a total of six offers. However, according to Paramount, these proposals received little engagement from Warner Bros.' leadership, prompting Paramount to take its bid directly to the shareholders in hopes of swaying opinion in their favor.

The outcome of this bidding war could have far-reaching implications for the global media landscape. Should Paramount succeed, the combined entity would become a major force in both traditional entertainment and digital streaming. Conversely, if Netflix prevails, it would dramatically expand its content library and market influence, potentially reshaping streaming competition worldwide.

Both potential deals remain subject to regulatory review and shareholder approval. The scale of these transactions, involving some of the most prominent names in media and entertainment, is expected to attract close examination from competition authorities in several regions, particularly in light of concerns regarding market concentration and consumer choice.

As the deadline for Paramount's offer approaches, attention will be focused on the reactions of Warner Bros. shareholders and the responses from both companies. The evolving situation signals a pivotal moment for the industry, reflecting the ongoing consolidation within the streaming and entertainment sectors as companies seek to strengthen their positions in a rapidly changing market.