Paramount Considers Hostile Bid After Netflix Wins Warner Bros Discovery Deal

Paramount is weighing a hostile takeover bid after Netflix secured a $72 billion agreement to acquire Warner Bros Discovery’s studio and streaming assets.

The blockbuster deal, announced Friday, capped weeks of intense bidding that also involved Comcast and Paramount Skydance.

While Netflix may have emerged as the winner, the story is far from over, with Paramount signaling it could bypass Warner Bros Discovery’s board and appeal directly to shareholders.

Paramount Considers Hostile Bid After Netflix Wins Warner Bros Discovery Deal

According to a report by CNBC, Paramount’s lawyers sent a letter to Warner Bros Discovery earlier this week alleging that the "sale process had been rigged in favour of Netflix."

The letter claimed Warner failed to properly consider Paramount’s all‑cash $30 per share offer, instead announcing "a predetermined outcome." Sources familiar with the matter told CNBC that Netflix’s initial bid was $27 per share, which at the time was higher than Paramount’s proposal. Now, Paramount is reportedly exploring the option of approaching shareholders directly with an improved bid—potentially higher than $30 per share. In such a scenario, Netflix would still have the chance to match the offer.

Netflix’s $72 billion acquisition would give the streaming giant control over Warner Bros. Discovery’s iconic film and television studios, HBO, HBO Max, DC Comics, and its gaming division.

Under the current deal, Warner Bros Discovery shareholders would receive $23.25 in cash and about $4.50 in Netflix stock per share, valuing Warner at $27.75 per share. That equates to roughly $72 billion in equity and $82.7 billion including debt, representing a premium of more than 121% compared to Warner’s closing price before buyout rumors surfaced in September.

The deal is expected to close after Warner Bros Discovery spins off its global networks unit, Discovery Global, into a separate listed company by Q3 2026. Netflix has agreed to a $5.8 billion breakup fee if the deal collapses, while Warner would owe $2.8 billion if it backs out. Netflix projects $2–3 billion in annual cost savings by the third year after closing.