Paramount has inserted itself into the massive Netflix–Warner Bros Discovery deal, submitting a hostile $108.4 billion acquisition offer just days after Netflix announced its historic agreement to buy Warner Bros Discovery (WBD) for $82.7 billion.

The new bid by Paramount Skydance (PSKY.O) is a last-minute attempt to outbid Netflix and reshape the future of Hollywood’s entertainment landscape.

Paramount’s Hostile Offer

Last Friday, Netflix won a weeks-long bidding war against Paramount and Comcast, securing a $72 billion agreement for Warner Bros Discovery’s television, film studios and streaming assets.

The deal, which includes WBD’s movie studios and the HBO Max streaming platform, consists of cash and stock valued at $27.75 per share, bringing the enterprise value to $82.7 billion, of which $72 billion reflects the equity value.

The acquisition is expected to close after WBD separates from its global television networks division—Discovery Global, which includes TNT and CNN—into a standalone public company by the third quarter of 2026.

Netflix’s Lead Faces New Challenges

Netflix’s winning bid included a $5.8 billion breakup fee and was already expected to face heavy antitrust scrutiny. President Donald Trump publicly questioned the deal over the weekend, while lawmakers and Hollywood unions voiced concerns about possible job cuts and higher consumer prices.

Paramount’s new offer, however, also brings regulatory risks. A merger between Paramount and Warner Bros would create a dominant studio powerhouse, raising fears of further job losses in an already consolidating industry.

Reuters reported that Paramount had raised its offer to $30 per share last Thursday, but WBD’s board expressed doubts about the company’s ability to finance the deal.

Paramount Challenges the Process

Paramount sent a formal letter to Warner Bros, disputing the fairness of the sale, alleging that WBD abandoned a neutral bidding process and favored Netflix from the outset.

This came after reports that WBD executives privately described the Netflix deal as a “sure thing” while dismissing Paramount’s bid.

Paramount CEO David Ellison told CNBC on Monday that there is “inherent bias” against his company in the bidding process, emphasizing that Paramount is fighting not only for its own shareholders but also for those of Warner Bros Discovery.

Some analysts consider Paramount a strong buyer, given Ellison’s financial backing from his father, Oracle co-founder Larry Ellison, the world’s second-richest man and an ally of the Trump administration.

Industry Outlook and Netflix’s Strategy

According to Bloomberg, Trump met with Netflix co-CEO Ted Sarandos in mid-November, telling him that Warner Bros should be sold to the highest bidder.

Analysts at Morningstar note that a Netflix–WBD merger would require significant price hikes or separate streaming platforms to prevent overlapping revenues, though they do not expect Netflix to pursue that strategy.

Sarandos, attempting to calm regulatory concerns, argued that the acquisition would create value for consumers, creators, and shareholders, adding that Netflix is “highly confident” in the antitrust review.

Experts say Netflix’s motivation lies in securing exclusive, long-term control over some of Hollywood’s most valuable intellectual property—and reducing its dependency on external studios—as the company expands into gaming, live entertainment, and broader consumer ecosystems.

Access to WBD’s vast IP library would give Netflix immediate credibility and commercial leverage in gaming, a sector where the company is still developing original content and brand recognition.