Not So Fast - Paramount Launches Hostile Takeover Bid for Warner Bros. Discovery

Entertainment

by Shawn Kirk
December 8, 2025

The dust had barely settled on Netflix’s announcement of its upcoming deal with Warner Bros. Studio when Paramount pulled a proverbial “Hold my beer”, going directly to Warner Bros. Discovery’s shareholders with an all-cash offer in an extraordinary attempt to secure Hollywood’s most coveted asset.

Paramount was widely regarded as the frontrunner for Warner Bros. But WBD opted instead for Netflix, which it said offered a more lucrative deal. This opinion was not shared by Paramount CEO David Ellison, who contends that his deal was the better offer. “We’re sitting on Wall Street, where cash is still king,” Ellison told CNBC in an interview Monday. “We are offering shareholders $17.6 billion more cash than the deal they currently have signed up with Netflix. And we believe when they see what is currently in our offer, then that’s what they’ll vote for.”

Paramount proposed buying the entire company at $30 per share in an all-cash deal, while Netflix’s bid was $27.75 per share for Warner Bros. and HBO — consisting of $23.25 in cash and $4.50 in stock — leaving cable properties like TNT and CNN to be divested separately. Netflix maintains that its deal would ultimately surpass Paramount’s in value.

In accepting the Netflix offer last week, WBD’s board agreed, deeming the deal was better. Paramount, unlike Netflix, is seeking to buy WBD in its entirety for $108.4 billion compared to $82.7 billion for Netflix’s offer, which doesn’t include the company’s cable channels. Market experts have long maintained that spinning off the cable assets separately, rather than pairing them with the movie studio and HBO will yield greater shareholder value.

Ellison is pushing back against this contention. “WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” said Ellison. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion. We believe the WBD Board of Directors is pursuing an inferior proposal.”

Ellison further argues that Paramount’s offer is more likely to pass regulatory scrutiny. In his interview, he highlighted that Netflix’s acquisition would combine the top and third-largest streaming platforms, raising antitrust concerns. He also referenced his strong ties to President Donald Trump, suggesting there could be fewer obstacles in Congress.

A hostile takeover occurs when a business makes an uninvited bid for another company’s shares, typically against management’s wishes. The acquiring company appeals directly to shareholders, proposing a premium above the current trading price. If it secures at least 50% of the shares, it gains majority control, allowing new board members who can approve the merger. This is the strategy Paramount appears to be employing. Ultimately it will be up to the shareholders to see how this plays out.

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Comments...

Last 10 comments - ( Read All Posts )

ucsf - 2026-01-13 @ 8:04 am

Looks like this whole situation is going to burn way more cash than it should. My only hope is that this won't affect even more productions in the near future.

rono - 2026-01-13 @ 1:10 am

If Paramount were to win, it would be interesting to see what happens to Warner Brothers' major IPs. Harry Potter, DC Comics/Batman/Superman, Game of Thrones, Matrix, & WB Cartoons will all be up for grabs. Paramount really has so few IPs of a similar popularity. Would they be moved to Paramount?

Netflix will certainly move those IPs into streaming. This should be interesting.

MagnaPrime - 2025-12-21 @ 8:51 am

On 12/18/2025 at 4:21 PM, Satam said:
Same.

Yeah, sorry I suck with typos. Fat thumbs. I had a couple shares of wbd stock and did receive a tender offer for the proposed price so....

Satam - 2025-12-18 @ 10:21 pm

3 hours ago, RobertD said:
Also, I took an embarrassing amount of time trying to think what the heck the "swc" was, before realizing it was likely a typo and you likely meant the SEC.

Same.

RobertD - 2025-12-18 @ 6:50 pm

On 12/9/2025 at 9:24 PM, MagnaPrime said:
I'm. NOt so sure the fcc or the swc let's this go through. Makes Netflix too powerful.

I think we live in a world where if you grease the right wheels it doesn't matter anymore. Also, I took an embarrassing amount of time trying to think what the heck the "swc" was, before realizing it was likely a typo and you likely meant the SEC.

MagnaPrime - 2025-12-10 @ 3:24 am

I'm. NOt so sure the fcc or the swc let's this go through. Makes Netflix too powerful.

Admiralty_Entertainment - 2025-12-08 @ 8:43 pm

*None* of this is a good move and it won't benefit customers regardless of who ends up buying WB. Of course, this has been the plan all along from WB's current leadership - they accidentally made a couple of billion dollar hits despite themselves (and thanks to the hard work of the creatives actually giving a damn about their projects rather than just 'creating content') but they've been looking to strip mine Warners for no good reason. There is absolutely no reason that WB has to be merged with anything - they have plenty of vertical integration, strong IP and (until the current regime) a fairly good (relatively speaking) reputation with creators. The encrapification of the world continues apace... sigh.

Jscott991 - 2025-12-07 @ 5:53 pm

17 minutes ago, Emnems80 said:
It would be sad if a lot of projects get trashed just for the tax right off. RIP Batgirl.

Honestly, I hope most of the stuff WB is doing is scrapped. A few IPs that I really enjoy are likely to have a rough couple of years because of some of the projects WB has going on.

Emnems80 - 2025-12-07 @ 5:39 pm

On 12/5/2025 at 10:46 AM, Jscott991 said:
I am curious if Netflix will demand more accountability. All of the major flops these studios have produced have to actually cost something to the bottom line, right? But then again Netflix and Disney+ throw tons of money away on streaming stuff that never seems to produce a pop either.

It would be sad if a lot of projects get trashed just for the tax right off. RIP Batgirl.

TheArrow - 2025-12-05 @ 11:31 pm

4 hours ago, Jscott991 said:
I am curious if Netflix will demand more accountability. All of the major flops these studios have produced have to actually cost something to the bottom line, right? But then again Netflix and Disney+ throw tons of money away on streaming stuff that never seems to produce a pop either.

Netflix ain't doing this for charity--they are going to take a good hard look at ALL the IP they are acquiring and they will lean on producers to make it profitable or it ( and they) will get dumped.That's what I meant by "uspets", and NETFLIX is going to want to start making back some of their expense asap. The people making those shows and movies---their jobs just got harder.

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