(qlmbusinessnews.com . Tue 9th Dec, 2025) London, UK —
Ellison-Backed Paramount Offers $108.4bn to Outdo Netflix in Warner Bros Race
Paramount Skydance, with the support of the influential Ellison family, has launched a fresh bid to acquire Warner Bros Discovery, aiming to overshadow a competing proposal from Netflix for the purchase of the entertainment giant's studio and streaming assets.
The corporation tabled a direct proposition to shareholders offering $30 (£22.50) for each share, intending to acquire the entirety of Warner Bros, including its traditional TV networks. Paramount described its bid as a “superior alternative” to that of Netflix, citing better upfront cash for shareholders and a higher chance of gaining regulatory approval.
Amidst these corporate manoeuvres, former U.S. President Donald Trump expressed skepticism towards Netflix's acquisition efforts, highlighting potential anti-competitive concerns due to the parties' significant market presence.
Paramount, a relatively smaller entity compared to Netflix and known for iconic brands such as CBS News, Nickelodeon, and the Mission Impossible series, initiated its acquisition attempts several months ago, propelling Warner Bros — the creator of HBO and venerable titles from Looney Tunes to Harry Potter — to initiate a formal bidding process.
Wall Street observers have long favoured a fusion between Paramount and Warner Bros, arguing that such a merger would significantly bolster the company’s market position against titans like Netflix and Disney.
The allure of Paramount as a potential buyer is partly attributed to the rapport between Trump and the Ellison family, notably tech magnate and Republican megadonor, Larry Ellison, which could potentially smooth the regulatory path.
However, Warner Bros notified of Netflix’s triumph in the acquisition race on Friday, with an agreement valuing its studio and streaming services at an approximate $83bn (£62.3bn), debt included. The deal proceeds post the projected spin-off of segments of the Warner Bros enterprise, such as Reporters, into a separate entity.
Paramount’s proposal places the value of Warner Bros at $108.4bn, positioning it as a more lucrative offer. Notably, Jared Kushner, Trump’s son-in-law, is among the financial allies collaborating with Paramount for this deal, as disclosed in documents filed with the Securities and Exchange Commission.
Despite Paramount's ambitious offer, Netflix's executives on Monday voiced confidence in their acquisition strategy, labeling Paramount's effort as “completely anticipated.”
Warner Bros has committed to evaluating Paramount's proposition, but maintains its current endorsement stance, promising a response within ten business days.
The potential transactions are poised for thorough examination by competition regulators in both the U.S. and Europe, given the possible implications for market dominance in streaming for Netflix’s plan, and the concerns over advertising and local television distribution impact from Paramount’s bid.
The intertwining of CBS and Reporters under a single umbrella, as a result of Paramount's actions, alongside the Ellisons' connection to Trump, has also spurred discourse regarding the effect on news journalism and the regulatory approval process.
In a CNBC interview, Paramount CEO David Ellison discussed his engaging discussions with Trump concerning the deal while emphasizing his respect for the former President’s stance.
Netflix stands as the leading streaming service globally, boasting over 300 million subscribers. Ellison’s ambition to further expand his business through the acquisition of Paramount, enhancing his Skydance film studio, highlights the transaction's significance to Paramount over Netflix.
Ellison critiqued the proposed spin-off of Warner Bros’ traditional networks as detrimental, undermining shareholder value, in contrast to Netflix executives who at a Monday conference, expressed optimism about gaining regulatory approval without necessitating substantial cutbacks.
Market reactions saw Warner Bros' shares increasing by over 4% and Paramount's by 9%, whereas Netflix experienced a decline of more than 3%.
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