Paramount on Monday unveiled a hostile takeover attempt for Warner Bros. Discovery, setting the stage for an intense showdown with rival bidder Netflix for control of the company behind HBO, CNN and one of Hollywood’s most iconic studios — and with it, enormous influence over America’s entertainment industry.
The move comes just days after Warner executives agreed to Netflix’s $72 billion acquisition proposal. Paramount’s rival offer, valued at $74.4 billion, bypasses Warner’s leadership and appeals directly to shareholders with a richer deal that also includes purchasing Warner’s entire business — including its cable networks, which Netflix does not want.
Paramount said it went hostile only after making several earlier proposals that Warner management largely ignored following the company’s October announcement that it was open to a sale.
In its message to investors, Paramount emphasized that its bid includes $18 billion more in cash than Netflix’s and argued it would face fewer regulatory hurdles under President Donald Trump, who often inserts himself into major corporate decisions.
Over the weekend, Trump suggested that a Netflix–Warner merger “could be a problem” because of its potential market dominance and said he planned to review the deal personally.
Netflix, however, insists Warner will ultimately reject Paramount’s offer and that both regulators and Trump will support its acquisition. Co-CEO Ted Sarandos pointed to several conversations he has had with Trump focused on Netflix’s hiring and growth. “The president’s interest is the same as ours — protecting and creating jobs,” Sarandos said Monday.
Political spotlight intensifies
Paramount’s bid gained immediate attention in Washington, where lawmakers from both parties raised concerns about how the competing deals might affect streaming prices, movie theater jobs, and the diversity of media voices.
Paramount CEO David Ellison — whose family has deep ties to Trump — said the company had submitted six proposals to Warner over the last three months. He argued that his offer would strengthen Hollywood, boost competition rather than reduce it, and increase the number of films released in theaters.
Regulatory filings also revealed another possible advantage for Paramount: an investment firm run by Trump’s son-in-law Jared Kushner plans to join the deal. Also participating are sovereign wealth funds from three Persian Gulf countries, widely believed to be Saudi Arabia, Abu Dhabi and Qatar — nations where Trump’s family business has recently expanded with major real estate partnerships.
Recent editorial changes at CBS News, such as installing Bari Weiss as editor-in-chief after Paramount’s acquisition of The Free Press, could also appeal to conservatives who view the network as historically left-leaning.
Trump remains unpredictable
Despite the connections, Trump’s involvement may not favor Paramount consistently. On Monday, he criticized the company for allowing 60 Minutes to interview Rep. Marjorie Taylor Greene, calling the network “NO BETTER THAN THE OLD OWNERSHIP.”
The struggle for control of Warner escalated Friday when Netflix unexpectedly announced it had struck a deal with Warner management to acquire the studios behind “Harry Potter,” HBO Max, and the DC franchise.
Netflix’s proposal includes cash and stock valued at $27.75 per Warner share, for a total enterprise value of $82.7 billion including debt. Paramount is offering $30 per share and values the deal at $108 billion including assumed debt. Its offer expires Jan. 8 unless extended.
However, the two bids are difficult to compare because they would result in different acquisitions. Netflix’s offer only proceeds after Warner spins off its cable networks, meaning CNN and Discovery are excluded — and the transaction is unlikely to close for at least a year.
Although the DOJ typically evaluates such mergers, Trump has broken precedent by taking a hands-on approach, alarming experts. Usha Haley of Wichita State University said Trump’s personal interest may be driven by a desire for “greater control over the media,” pointing to Paramount’s ties to Trump supporter Larry Ellison.
John Mayo, an antitrust expert at Georgetown, noted that although political rhetoric may intensify, DOJ analysts are likely to maintain nonpartisan standards regardless of the administration.
On Monday, Paramount shares rose 9%, Warner Bros. climbed 4.4%, and Netflix stock dropped 3.4%.
