The battle for Warner Bros Discovery (WBD) has entered a decisive phase. Just three days after the announcement of a merger agreement with Netflix, Paramount Global, together with Skydance, has submitted an all-cash offer of $30 per share, valuing the company at more than $108 billion. The goal is to present shareholders with an alternative to the approximately $72 billion deal signed with Netflix on December 5.
Paramount’s proposal stands out not only for its higher valuation but also for its transaction structure. The Netflix agreement involves a mix of cash and stock and covers only selected “premium assets” — studios and streaming — excluding linear cable networks. Paramount instead proposes the acquisition of the entire company, offering shareholders immediate liquidity.
The consortium led by David Ellison is backed by substantial financial resources, including RedBird Capital, major banks such as Bank of America, Citi, and Apollo, and the significant support of Larry Ellison, founder of Oracle. Additional financing is expected from Middle Eastern sovereign wealth funds and Affinity Partners, the investment firm founded by Jared Kushner.
The situation has also drawn political attention. Speaking at the Kennedy Center, Donald Trump described the WBD–Netflix deal as “a problem,” pointing to concerns over a potential dominant position in the streaming market. “Netflix already holds a very large market share, and this deal would expand it even further,” the President said, indicating that he expects to be “involved” in the review process.
The Netflix–WBD agreement includes a breakup fee of approximately $5.8 billion should the merger be terminated. Paramount must therefore demonstrate to shareholders that its proposal remains more advantageous even after accounting for the penalty. The company has also sent a letter to WBD’s board criticizing the sale process as insufficiently competitive — a sign that legal developments could follow if its offer is not seriously considered.
The outcome of this process could reshape the global landscape of streaming and entertainment.
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