Paramount Skydance has officially launched a hostile takeover bid for Warner Bros. Discovery, offering $30 per share in a deal valued at over $108 billion. This aggressive move, which exceeds Netflix’s $27.50-per-share agreement by $25 billion, aims to block Netflix from acquiring the media giant and effectively forces a showdown with Warner CEO David Zaslav.
The Battle for Warner Bros. Discovery
The conflict escalated after Warner CEO David Zaslav rejected Paramount’s initial $20-per-share offer for the entire company. Zaslav had previously sought a $30-per-share valuation, but intended to achieve this by splitting the company, offloading the “Discovery” cable networks, and saddling that entity with the bulk of Warner’s debt. Netflix subsequently stepped in, agreeing to a $27.50-per-share deal set to finalize in the second half of 2026, provided the company is split first.
Paramount is now pushing back with a 50 percent increase over its previous bid. Backed by the billionaire Ellison family, the company describes its offer as a “superior alternative,” specifically targeting shareholders who may now be dissatisfied with Netflix’s lower valuation.
Regulatory Hurdles and Political Intrigue
A potential Netflix-Warner merger would consolidate massive power within the streaming industry, particularly with the integration of HBO Max. While the deal initially appeared to have momentum—bolstered by Netflix CEO Ted Sarandos’ recent visit to the Oval Office—the regulatory landscape remains volatile. President Donald Trump recently signaled that the merger “could be a problem,” introducing significant uncertainty into the process.
The political backdrop is further complicated by Paramount’s recent history; the company previously settled a legal dispute with Trump via a $16 million payment following its merger with Skydance.
Financing a Massive Valuation
Paramount’s $108.4 billion offer significantly eclipses the $83 billion valuation attached to Netflix’s post-debt-restructuring deal. Industry experts note that Warner Bros. Discovery’s market value is nowhere near these figures, with the company valued at roughly $10 per share just six months ago.
While Larry Ellison, whose personal wealth is estimated at nearly $270 billion, is the primary force behind the bid, the financing structure involves significant external capital. Reports from Axios and The New York Times indicate that the funding package includes $24 billion from sovereign wealth funds in Saudi Arabia, Qatar, and the UAE. Additionally, the deal involves contributions from Tencent, RedBird Capital Partners, and Affinity Partners, the firm led by Jared Kushner. The involvement of Kushner has fueled speculation regarding the President’s sudden intervention in the proceedings.
Updated: 12/08/2025, 11:17 a.m. ET: Updated the post to add details about Paramount’s potential investors in the deal.
