Paramount Skydance, led by David Ellison, has made a hostile takeover bid for Warner Bros. Discovery (WBD), directly challenging a previous agreement between Netflix and WBD. The new offer is an all-cash proposal of $30 per outstanding share, totaling approximately $108.4 billion, and matches the terms Paramount presented on December 4.

This bid was taken straight to WBD shareholders on Monday, giving them 10 business days to decide whether to accept or reject the offer. In contrast, the earlier deal between Netflix and WBD involved a combination of cash and stock, valued at $27.75 per WBD share and about $82.7 billion in total.

David Ellison stated, “WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company. Our public offer provides superior value and a more certain and quicker path to completion.” He also expressed concerns that the WBD Board is pursuing a less favorable proposal that includes a mix of cash and stock, uncertain future trading value, and a challenging regulatory process.

A Paramount spokesperson added that their offer is “strategically and financially compelling,” providing a more straightforward alternative to the Netflix transaction, which could face a lengthy and uncertain regulatory review and involves a complex mix of equity and cash.

The Paramount bid is backed by three Middle Eastern sovereign wealth funds—Saudi Arabia, Qatar, and Abu Dhabi—as well as Jared Kushner’s Affinity Partners. These investors have agreed to forgo governance rights, including board representation, and will not fall under the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS). Tencent, a Chinese internet company that had previously committed $1 billion, is no longer involved in the financing.

Paramount also claims the deal will benefit the film industry, pledging to release over 30 films in theaters if the acquisition is successful. A spokesperson emphasized, “Our focus is on expanding creative output, not dominating the sector, as Netflix envisions. Our goal is to make Hollywood stronger in a way that benefits the entire ecosystem.”

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