In a dramatic turn of events, Paramount has set the stage for a fierce takeover battle by launching a hostile bid for Warner Bros. Discovery. This move, announced on Monday, positions Paramount against Netflix in a high-stakes contest over the powerhouse behind HBO, CNN, and DC Studios. The outcome could fundamentally reshape the entertainment industry as we know it.

The timing of Paramount’s bid is noteworthy, coming merely days after Netflix unveiled its own $72 billion agreement to acquire Warner Bros. Paramount’s offer, valued at roughly $74.4 billion or $30 per share in cash, takes a more aggressive approach by directly appealing to Warner shareholders.

A key differentiator in Paramount’s offer is the inclusion of Warner Bros.’ cable television assets, which Netflix’s bid does not cover. Paramount executives assert that their proposal surpasses Netflix’s by approximately $18 billion, dismissing Netflix’s valuation of the cable assets as “illusory” and forward-looking without substantial basis.

Interestingly, Warner Bros. had previously turned down this very offer from Paramount, opting instead for Netflix’s less comprehensive deal.

Paramount has openly criticized the Netflix proposition, highlighting concerns over potential regulatory hurdles. They argue that Netflix’s offer would subject shareholders to a prolonged, complex approval process across multiple jurisdictions, with an uncertain outcome, further complicated by a blend of equity and cash components.

Paramount said it had submitted six proposals to Warner Bros. over a 12-week period.

“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,” Paramount Chairman and CEO David Ellison said in a statement. “We believe they will benefit from the enhanced competition, higher content spend and theatrical release output, and a greater number of movies in theaters as a result of our proposed transaction.”

On Friday, Netflix struck a deal to buy Warner Bros. Discovery, the Hollywood giant behind “Harry Potter” and HBO Max. The cash and stock deal is valued at $27.75 per Warner share, giving it a total enterprise value of $82.7 billion, including debt.

The transaction is expected to close in the next 12 to 18 months, after Warner completes its previously announced separation of its cable operations. Not included in the deal are networks such as CNN and Discovery.

But President Donald Trump said Sunday that the Netflix deal “could be a problem” because of the size of the combined market share.

The Republican president said he will be involved in the decision about whether the federal government should approve the deal.

Usha Haley, a Wichita State University professor who specializes in international business strategy, said Paramount’s ties to Trump are notable. Ellison is the son of longtime Trump supporter Larry Ellison, the world’s second-richest person.

“He said he’s going to be involved in the decision. We should take him at face value,” Haley said of Trump. “For him, it’s just greater control over the media.”

In October, Paramount said it bought the news and commentary website The Free Press and installed its founder, Bari Weiss, as the editor-in-chief of CBS News, saying it believes the country longs for news that is balanced and fact-based.

It was a bold step for the television network of Walter Cronkite, Dan Rather and “60 Minutes,” long viewed by many conservatives as the personification of a liberal media establishment. The network placed someone in a leadership role who has a reputation for resisting orthodoxy and fighting “woke” culture.

Paramount’s tender offer is set to expire on Jan. 8, 2026, unless it’s extended.

Shares of Warner Bros. and Paramount jumped between 5% and 6% at the opening bell Monday. Shares of Netflix edged lower.
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AP National Writer Matt Sedensky and AP Media Writer David Bauder contributed to this story.