Paramount Fires Back at Netflix With a Bigger, All-Cash Bid for Warner Bros. Discovery

Paramount has officially entered the battlefield for Warner Bros. Discovery, launching a bold all-cash offer that instantly puts pressure on Netflix’s recently announced acquisition plans.

Image: Paramount / Warner Bros. Discovery

According to both Paramount’s public statement and internal filings, the company is offering $30 per share in cash for the "entire" Warner Bros. Discovery business, which also includes sports and news TV brands like CNN and TNT Sports.

That puts the deal’s enterprise value at roughly $108.4 billion, a major jump over Netflix’s mixed cash-and-stock package valued at about $27.75 per share. Paramount is also dangling an extra $18 billion in cash compared to what Netflix placed on the table.

Paramount CEO David Ellison didn’t hold back when addressing shareholders, saying that Warner Bros. investors “deserve an opportunity to consider our superior all-cash offer.” As per the company’s statements, Paramount had already presented six proposals over 12 weeks but claimed Warner Bros. Discovery never engaged meaningfully. With that, the studio decided to take its pitch directly to shareholders and the board in hopes of speeding up the decision.

One of Paramount’s biggest talking points is regulatory certainty. The company describes its approach as “pro-consumer” and argues that Netflix’s move could face major resistance due to concerns over streaming market dominance. As per the reports, Netflix’s potential combination with Warner Bros. Discovery would give it an estimated 43% global SVOD share—a number that easily raises antitrust eyebrows. Paramount warns this could lead to higher costs for consumers, reduced earnings for creators, and an overall hit to the theatrical ecosystem.

Ellison added that the Paramount-WBD merger would “create a stronger Hollywood,” emphasizing investments in theatrical releases, expanded content budgets, and a more competitive streaming landscape through a combined Paramount+ and HBO Max offering. Paramount also highlighted advantages like a broader sports portfolio, stronger linear TV networks, improved cash flow potential, and technology support through its partnership with Oracle.

The company further stated that the transaction carries no financing condition. Funding would come from new equity, backing from its principal investors, and $54 billion in debt commitments from major banks including Bank of America and Citi. Paramount argues this structure gives the deal a cleaner, faster path compared to Netflix’s more complex arrangement.

Paramount has set the expiration date of its tender offer for January 8, 2026, unless extended.

Meanwhile, Netflix has agreed to pay $82.7 billion, including debt, for Warner Bros. in one of the biggest media deals ever. If it goes through, Netflix, once called the “Albanian army” by former Time Warner CEO Jeff Bewkes, will take over one of Hollywood’s most historic studios along with HBO, its former inspiration. Netflix’s deal excludes broadcast networks and cable channels.

Key Financials

Paramount’s Offer & Valuation

• Paramount is offering $30.00 per share in cash for all outstanding shares of Warner Bros. Discovery (WBD).

• Paramount’s bid represents an enterprise value of $108.4 billion.

• The offer provides $18 billion more in cash than Netflix’s consideration.

• Paramount’s offer represents a 139% premium over WBD’s undisturbed stock price of $12.54 (as of Sept. 10, 2025).

• Netflix’s Competing Offer: $27.75 per share, consisting of: $23.25 in cash and $4.50 in stock.

• Netflix’s offer carries an estimated enterprise value of $82.7 billion (excluding SpinCo).

Debt, Financing & Capital Structure

• Paramount’s proposed transaction has no financing condition.

• Paramount secured $54 billion of debt commitments from:

  • Bank of America

  • Citi

  • Apollo

• The transaction will be financed through:

  • New equity backed by Paramount’s principal equity holders

  • The above-mentioned $54B debt financing package

Synergy & Efficiency Targets

• Combined business plans to execute on $6+ billion in cost synergies.

• Paramount separately expects over $3 billion in standalone cost efficiencies from ongoing transformation plans.