Netflix’s agreed $82.7 billion cash-and-stock deal to buy Warner Bros Discovery’s film, TV and streaming business now faces a hostile challenge from Paramount Skydance, which has launched a $30-per-share, all-cash tender offer valuing WBD at about $108.4 billion (enterprise value, including debt).
Paramount Skydance said its bid offers shareholders superior value and certainty — and would acquire all of WBD, including global networks such as CNN, Discovery channels and other cable/linear assets.
WBD confirmed it has received the unsolicited offer and said its board will review the proposal consistent with its fiduciary duties and in line with its existing agreement with Netflix. However, as of this writing the board has not changed its recommendation in favor of the Netflix transaction and has urged shareholders to take no action for now, promising a formal response within 10 business days.
Under Netflix’s signed merger agreement, the transaction would cover WBD’s studio, streaming and entertainment-content businesses — not its linear cable networks. The Netflix offer reportedly valued WBD at $82.7 billion enterprise value (roughly $23.25 in cash and $4.50 in Netflix stock per share).
Paramount argues its all-cash bid, which covers the entire company including the global networks, provides “a more certain and quicker path to completion” for shareholders.
Netflix says it will keep Warner Bros’ current operations, including theatrical releases, while folding franchises such as Game of Thrones, Harry Potter, The Sopranos and the DC Universe into its streaming catalogue.
Hollywood unions have responded with open opposition. In a formal statement, the Writers Guild of America West and East called the deal “the world’s largest streaming company swallowing one of its biggest competitors” and said “this merger must be blocked,” warning of job losses, downward pressure on wages and less diverse content.
Cinema United, which represents more than 30,000 U.S. screens and 26,000 international screens, said the acquisition “poses an unprecedented threat” and could “risk removing 25% of the annual domestic box office” if Warner titles move away from robust theatrical runs.
Political scrutiny is rising in parallel. President Donald Trump said he would “be involved in that decision” and warned the combined company’s market share “could be a problem,” potentially signaling an antitrust review in the U.S., alongside expected scrutiny in Europe.
The outcome will potentially reset licensing leverage, theatrical windowing norms and the balance of power between global streamers and everyone else in the content supply chain.