Paramount’s bid is backed by $24bn from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi, along with Jared Kushner’s Affinity Partners.
Paramount, operating under Skydance Corporation, has initiated an all-cash tender offer to purchase all outstanding shares of Warner Bros. Discovery (WBD) for $30 per share, a move valued at an enterprise total of $108.4bn. The offer covers the entirety of WBD, including its Global Networks division, and is being positioned as a superior alternative to WBD’s agreed deal with Netflix.
Paramount argues that its bid provides clearer value and faster execution than the Netflix proposal, which relies on a mix of cash and stock, carries regulatory uncertainty, and places shareholders at risk of being left with a heavily indebted, reduced-scale Global Networks operation. The company emphasised that its offer includes $18bn more in cash for shareholders than the Netflix package.
The bid, which has now turned hostile, is backed by major global investors including Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company, the Qatar Investment Authority and Affinity Partners, the fund led by Jared Kushner. Abu Dhabi-based Lunate and Qatar’s sovereign wealth fund are significant investors in Affinity, which is separately part of a consortium pursuing the acquisition of Electronic Arts for $55bn.
Paramount Chairman and CEO David Ellison said WBD shareholders deserve the opportunity to consider a proposal that offers immediate, certain value. He criticised the Netflix agreement as overly complex, exposed to prolonged antitrust scrutiny, and dependent on the future performance of Netflix stock. Paramount maintains that a merger between Netflix and WBD would create significant anticompetitive concerns globally, particularly in markets where the combined entities would dominate the subscription streaming landscape.
Despite submitting six separate proposals over 12 weeks, Paramount said WBD repeatedly declined meaningful engagement. Ellison said taking the offer directly to shareholders ensures they have a chance to evaluate what Paramount calls the clearly superior option.
Paramount claims the acquisition would create a powerful, next-generation global media company with the scale to invest in premium content, support theatrical releases, strengthen its direct-to-consumer platforms, and compete more effectively against dominant players like Netflix, Amazon and Disney. The company pledged to maintain both studios’ theatrical slates, expand support for creative talent and leverage combined sports rights—including the NFL, Olympics, Champions League and UFC—across all distribution channels.
The combined business would also rely on Paramount’s technology ties with Oracle and pursue more than $6bn in cost synergies, in addition to standalone efficiencies already planned. Paramount says the transaction would help reinvigorate Hollywood, bolster competition across the entertainment landscape, and deliver greater value for creators, consumers and shareholders.
Paramount reiterated that it remains confident in securing regulatory approval and completing the transaction efficiently, contrasting this with what it describes as the lengthy and uncertain path facing Netflix’s proposed acquisition of WBD.
