Paramount has escalated its battle for Warner Bros Discovery (WBD) with a hostile $74.4 billion cash offer, surpassing Netflix’s $72 billion deal announced just days ago. Unlike Netflix, Paramount’s proposal also includes the acquisition of WBD’s cable assets and urges shareholders to reject the Netflix bid, marking a rare and aggressive move in the U.S. entertainment sector.

“We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers, and the movie theater industry,” said David Ellison, Paramount Chairman and CEO. “Shareholders will benefit from enhanced competition, higher content spend, more theatrical releases, and an overall boost to the film industry.”

Details of Paramount’s Offer

• Offer value: $74.4 billion, or $30 per share in cash.
• Additional assets: Includes Warner Bros cable networks, which Netflix did not acquire.
• Shareholder appeal: Paramount asks WBD shareholders to reject Netflix’s competing offer, claiming it relies on an “illusory prospective valuation” of the cable assets.
• Bid timeline: Paramount’s tender offer expires January 8, 2026, unless extended.

Paramount has submitted six proposals over 12 weeks to WBD, highlighting its determination to secure the media giant in a bid that could reshape Hollywood’s competitive landscape.

Netflix Deal and Regulatory Concerns

On Friday, Netflix reached a $72 billion cash-and-stock agreement to acquire Warner Bros Discovery, including popular franchises like Harry Potter and the streaming platform HBO Max. The enterprise value of Netflix’s deal is $82.7 billion, factoring in debt. Excluded from the transaction are CNN and Discovery networks.

US President Donald Trump has signaled potential involvement in reviewing the deal, citing concerns about market concentration:

“The Netflix deal could be a problem because of the size of the combined market share,” Trump said. He indicated he would play a role in whether federal approval is granted.

Analysts note the political and financial implications of Paramount’s ties to Trump, as David Ellison, Paramount CEO, is the son of Larry Ellison, a longtime Trump supporter and the world’s second-richest individual.

Paramount’s Media Strategy

In October, Paramount purchased The Free Press, a news and commentary website, appointing Bari Weiss as editor-in-chief of CBS News. The move reflects Paramount’s effort to position itself as a media outlet providing balanced, fact-based reporting in an industry often criticized for ideological bias.

Market Response

Paramount’s hostile bid sparked immediate market reactions:

• Warner Bros and Paramount shares: Jumped 5–6% at the opening bell.
• Netflix shares: Experienced a slight decline.

The battle for WBD represents one of the most high-stakes media acquisition contests in recent years, highlighting the convergence of streaming platforms, traditional studios, and cable assets in shaping the future of Hollywood.