Paramount Skydance launched a hostile takeover bid for Warner Bros. Discovery on Monday, offering $74.4 billion to acquire the entire company and directly challenging Netflix's recently announced $72 billion agreement to purchase Warner's studio and streaming operations.
The move bypasses Warner's board after management selected Netflix as the preferred bidder last Friday, with Paramount arguing its all-cash-inclusive proposal represents a superior alternative for shareholders.
Paramount's offer values Warner at approximately $30 per share and includes the cable networks that Netflix's deal excludes pending a planned spin-off.
The bidding war has drawn significant attention in Washington, with President Donald Trump publicly questioning whether a Netflix-Warner combination "could be a problem" due to combined market share in streaming.
Paramount highlighted potential advantages under the incoming Trump administration, noting its proposal contains $18 billion more in cash than Netflix's bid and faces lower antitrust hurdles.
David Ellison, Paramount's chairman and CEO and son of Oracle founder Larry Ellison, stated the deal would strengthen Hollywood, boost theatrical releases, and preserve competition.
A regulatory filing revealed an investment firm led by Trump's son-in-law Jared Kushner is participating in financing the Paramount bid.
Warner Bros. Discovery shares rose nearly 4% in early trading Monday, while Netflix shares fell 4% and Paramount shares gained 9%.
Wall Street analysts have long viewed a Paramount-Warner merger as strategically logical to achieve scale against larger streaming rivals.
Both proposed transactions would face intense antitrust review in the United States and Europe, with Netflix's deal raising concerns about streaming dominance and Paramount's plan drawing scrutiny over combined influence in advertising, sports, and children's programming.
Paramount's tender offer is scheduled to expire January 8 unless extended.