Paramount challenges Netflix with bid for Warner Bros. takeover

Paramount has reportedly launched a hostile takeover bid for Warner Bros. Discovery, the parent company of HBO, CNN and a major film studio, in a move that could significantly reshape the US entertainment industry. The approach, announced on Monday, sets up a direct contest with rival bidder Netflix.

The bid follows reports that senior Warner executives had recently approved a USD 72 billion acquisition offer from Netflix. Paramount is believed to be attempting to surpass this by appealing directly to Warner shareholders with a higher proposal valued at approximately USD 74.4 billion. Unlike Netflix, Paramount is seeking to acquire all of Warner’s operations, including its cable division, which Netflix does not intend to purchase.

According to reports, Paramount stated on Monday that it would make a direct offer to Warner Bros. shareholders worth roughly USD 74.4 billion, equivalent to USD 30 per share in cash.

The company has also urged shareholders to reject Netflix’s proposal, arguing that Netflix’s valuation of the cable assets is based on what Paramount describes as an “illusory prospective valuation”. Paramount estimates its offer to be around USD 18 billion greater than Netflix’s.

Despite this, Warner Bros. rejected Paramount’s overture in favour of continuing with Netflix’s offer, which is expected to reshape the entertainment landscape in the United States.

Last Friday, Netflix and Warner Bros. Discovery confirmed they had reached a final agreement under which Netflix will acquire Warner Bros. in a cash-and-stock transaction valued at USD 27.75 per WBD share.

The parties expect the deal to close in the third quarter of 2026, following the previously announced separation of WBD’s Global Networks division, Discovery Global, into an independent publicly traded company.

Read more: https://www.voicendata.com/ott/streaming-giant-netflix-seals-historic-warner-bros-takeover-10890805

However, due to the combined market share of the two companies, President Donald Trump stated on Sunday that Netflix’s acquisition of Warner Bros. Discovery “could be a problem”. He said he intends to take part in the federal government’s decision on whether to approve the USD 72 billion deal.

Paramount’s tender offer is currently due to expire on 8 January 2026, unless an extension is granted.