Friday saw the blockbuster announcement of Netflix’s agreement to acquire Warner Bros. Discovery, but Paramount are not lying down easily, and have made a more improved bid and raised anti-competitive concerns.
Paramount launched a rival $108.4bn bid for Warner Bros. Discovery (WBD), challenging Netflix’s recent proposed deal.
The all-cash tender bid, submitted on December 8, is to acquire WBD’s outstanding shares, which Paramount values at $30 per share, equating to an enterprise value of $108.4bn. This represents a 139% premium to the undisturbed WBD stock price of $12.54 as of September 10, 2025.
The offer is $20bn+ more than what Netflix agreed for WBD after it was announced on December 5 the global streaming entity is set to acquire WBD’s film, TV and streaming studios’ for a total enterprise value at $82.7bn.
Despite this, Paramount believes Netflix’s offer is “inferior” and “offers uncertain value” to WBD shareholders.
Paramount also argues that Netflix’s offer is “based on an illusory prospective valuation of Global Networks that is unsupported by the business fundamentals and encumbered by high levels of financial leverage assigned to the entity”.
David Ellison, Chairman and CEO of Paramount, said: “WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company.
“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.”
What are Paramount offering?
Within the initial agreement between Netflix and WBD, the global streaming service proposed integrating WBD’s film and television studios, such as HBO Max, into Netflix, but Paramount have raised issues with this.
Paramount stated Netflix’s transaction is predicated on being approved by the relevant regulators and is not viewed as anticompetitive. But Paramount revealed it believes the WBD merger would create a monopoly with a 43% share of the global Subscription Video on Demand (SVOD) subscribers.
In regions such as Europe, for example, Paramount stated the Netflix deal would combine the number one SVOD player (Netflix) with a number two or strong number three competitor (WBD).
“The Netflix transaction creates a clear risk of higher prices for consumers, lower pay for content creators and talent and the destruction of American and international theatrical exhibitors,” said Paramount in its statement, while also acknowledging further risks due to Netflix never having undertaken a large-scale acquisition such as WBD.
Paramount argues its $108.4bn proposal is better as it would acquire all of WBD, and not just the Global Networks arm of the company. Paramount is also confident it would achieve regulatory clearance as its potential merger would “enhance competition and is pro-consumer”.
Paramount is also promising a broad sports rights portfolio for the combined company, as it would be able to broadcast live NFL, Olympic Games, UFC, PGA Tour, NHL and US college sports, as well as the UEFA Champions League in Europe from 2027.
The company also stated it submitted six proposals to WBD after it was put on sale in October, but WBD never engaged in any meaningful negotiations, which is why its latest offer is being sent directly to shareholders and the WBD Board of Directors.
