Paramount is refusing to accept defeat in the Warner Bros. Discovery auction; it said Monday that it was launching a hostile takeover of its rival after being spurned last week in the bidding.
The move comes four days after Warner’s board unanimously selected Netflix as the winner.
Netflix had offered $72 billion — or $27.75 a share — for a big chunk of the company: Warner Bros. film and television studios, the expansive lot in Burbank and HBO and HBO Max. Additionally, Netflix would take on $10.7 billion in Warner Bros. debt for a total deal value of $82.7 billion.
Paramount, backed by the billionaire Larry Ellison family, had entered the final week of the auction with a $25 a share all-cash offer for all of Warner Bros. Discovery, according to people involved in the auction who were not authorized to comment. In the final hours, Paramount upped its offer to $30 per share — but still came away empty handed.
Paramount confirmed Monday that it didn’t make it’s $30 per share offer until the day before Netflix was announced as the winner.
“We never heard back,” Paramount Chairman and Chief Executive David Ellison told CNBC Monday morning. “We’re here to finish the process.”
A Warner representative did not immediately provide comment.
Paramount now is bypassing Warner’s board, management and bankers and appealing directly to shareholders in a hostile takeover. In a statement, Paramount said it’s bid was a “superior alternative” to Netflix, which will face a rigorous and lengthy anti-trust review.
In a statement, Paramount called Netflix’s offer was “inferior” one that would expose Warner shareholders “to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome.” Paramount has long counted on its warm relationship with President Trump to smooth the regulatory process, at least in the U.S.
Warner Bros. Discovery continues to believe that Netflix submitted the best offer. Netflix is not buying Warner’s basic cable channels, including CNN, TBS, Food Network and TLC, and Warner figures it can spin off those assets into a separate company Discovery Global for about $3 to $4 a share.
When adding the Discovery Global value with Netflix’s $27.75 a share price, Warner believes its shareholders will come away with more than $31 a share for the company — more than what Paramount offered.
Since mid-September, Paramount had submitted six bids for all of Warner Bros. Discovery.
President Donald Trump said Sunday that the deal struck by Netflix to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share.
“We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry,” Ellison said in a statement. “We believe they will benefit from the enhanced competition, higher content spend and theatrical release output, and a greater number of movies in theaters as a result of our proposed transaction.”
Paramount’s tender offer is set to expire on Jan. 8, 2026, unless it’s extended.
Shares of Warner Bros. and Paramount jumped between 5% and 6% at the opening bell on Monday. Shares of Netflix edged lower.
Staff Writer Stephen Battaglio and the Associated Press contributed to this report.
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