The battle for Warner Bros. Discovery just escalated dramatically. Paramount Skydance announced Monday it's launching a hostile takeover bid valued at $108 billion—directly challenging Netflix's $72 billion deal struck just days earlier.

"We're here to finish what we started," CEO David Ellison told CNBC, referring to Paramount's earlier failed attempt to acquire WBD's assets.

The Competing Offers

Paramount's Bid:

  • All-cash offer at $30 per share
  • Enterprise value: $108.4 billion
  • Includes all of Warner Bros. Discovery—studios, streaming, and TV networks (CNN, TBS, TNT)
  • Going directly to shareholders, bypassing the WBD board

Netflix's Deal:

  • $27.75 per share (mix of cash and stock)
  • Total value: $72 billion
  • Acquires only studio and streaming assets (Warner Bros., HBO, Max)
  • Excludes cable networks—CNN and others would be spun off separately

Who's Backing Paramount's Bid

Paramount's aggressive offer is backed by serious money. The company has secured $40.7 billion in capital from:

  • Larry Ellison (Oracle co-founder and David Ellison's father)
  • RedBird Capital Partners
  • Sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi
  • Affinity Partners (Jared Kushner's investment firm)

Additionally, Bank of America, Citi, and private equity firm Apollo Global have committed $54 billion in funding.

Warner Bros. Discovery's Response

WBD acknowledged Paramount's offer Tuesday, stating its board will "carefully review" the proposal and issue a recommendation within 10 business days.

For now, the company said it is "not modifying its recommendation with respect to the agreement with Netflix." But the higher all-cash offer creates significant pressure on the board to engage.

The Political Dimension

President Trump weighed in Sunday, suggesting Netflix's acquisition could face antitrust scrutiny. "This could be a problem," he posted, adding he would "be involved" in the approval process.

David Ellison argued Paramount's deal would have a shorter regulatory approval timeline given the company's smaller size and "friendly relationship" with the current administration.

The political dynamic adds another layer of uncertainty. If regulators signal concerns about Netflix's market power, Paramount's path to approval could be smoother.

What This Means for Investors

For WBD shareholders, the bidding war is welcome news. The stock surged on Paramount's announcement, as investors anticipate either a higher Netflix offer or a Paramount victory.

Key considerations:

  • Paramount's offer is all cash: Shareholders get certainty, no exposure to Paramount stock
  • Netflix offer includes stock component: $4.50 per share in Netflix stock means shareholders share upside (and downside)
  • Regulatory timeline matters: A deal that closes faster has value
  • CNN's fate differs: Paramount keeps it; Netflix spins it off

For Netflix investors, a successful WBD acquisition would create a streaming and content powerhouse—but at significant cost. The deal requires substantial debt and dilutes shareholders.

Paramount's investors face the opposite calculus: acquiring WBD would dramatically expand scale but also leverage. The company is betting that size matters in the streaming wars.

What Happens Next

Several scenarios are possible:

  1. Netflix raises its bid: To compete with Paramount's $30, Netflix might need to offer $32-35 per share
  2. WBD accepts Paramount: If the board decides the all-cash premium and faster approval timeline justify switching
  3. Bidding war continues: Both parties could continue raising offers
  4. Regulatory intervention: Either deal could face antitrust challenges that alter the landscape

WBD shareholders should expect volatility as this plays out. The 10-business-day review period gives the board time to negotiate and potentially extract a higher offer from one or both parties.

The Bottom Line

Media consolidation is accelerating. Whether Paramount or Netflix ultimately acquires Warner Bros. Discovery, the resulting company will reshape the entertainment industry.

For individual investors, the lesson is familiar: major M&A creates opportunity but also uncertainty. If you own WBD shares, you're in a favorable position with two deep-pocketed bidders competing. If you're considering a position, understand that premium prices reflect acquisition speculation—not necessarily long-term business value.

The next 10 days will be telling. Stay tuned.