Paramount is making a hostile bid for Warner Bros Discovery (WBD), launching a fresh challenge against Netflix after the rival streamer announced a takeover deal with Warner last week.
Paramount said on Monday that it would go straight to WBD shareholders with a $30 per share cash offer (€25.75). That's compared to Netflix's offer of $27.75 in cash and stock, bringing the deal's value to $82.7bn (€70.99bn).
Paramount's bid is for the whole of WBD, while Netflix is focused on its studios and streaming business.
The firm's challenge also comes after numerous rejections from Warner.
"Despite Paramount submitting six proposals over the course of 12 weeks, WBD never engaged meaningfully with these proposals which we believe deliver the best outcome for WBD shareholders," said Paramount in a statement on Monday.
"Paramount has now taken its offer directly to WBD shareholders and its Board of Directors to ensure they have the opportunity to pursue this clearly superior alternative."
Paramount criticised the Netflix offer, saying it exposes Warner's shareholders to an uncertain outcome linked to a long, complicated approval process. The firm also slammed Netflix's "complex and volatile mix of equity and cash”, arguing that its own bid is more likely to be approved by authorities.
The deal with Netflix is expected to close in the next 12 to 18 months, after Warner completes its previously announced separation of its cable operations, including CNN, TNT and Discovery Channels.
However, Paramount's latest bid could throw up an unexpected obstacle, as could potential opposition from the US government.
President Donald Trump said on 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.
The Republican president said he will be involved in the decision about whether the federal government should approve the deal.
Paramount's tender offer is set to expire on 8 January 2026, unless it's extended.
If Warner Bros does break its current agreement with Netflix, it will owe the rejected streamer a $2.8bn (€2.4bn) fee.
Shares of Warner Bros and Paramount jumped between 5% and 6% at the opening bell Monday. Shares of Netflix edged lower.
