Netflix Thought It Had the Ending, Paramount Just Wrote a Plot Twist

From Binge to Battle

The Warner Bros Discovery (NSDQ:WBD) acquisition saga has escalated into a high-stakes bidding war, with Netflix (NSDQ:NFLX) securing an initial deal for key assets and Paramount Global (NSDQ:PARA) launching a hostile takeover bid for the entire company. It almost feels like a poker match, Paramount holding pocket aces and Netflix sitting on pocket kings, each trying to push the other off the hand. Netflix may have even gotten ahead of itself, reportedly sending emails to customers suggesting the company had already won the acquisition.

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Paramount’s $108B Plot Twist Turns Netflix’s Warner Bros Deal Into a Cliffhanger

Netflix agreed to acquire Warner Bros Discovery’s studio and streaming division for 72 billion dollars in equity value on December 5. Then yesterday, Paramount Global countered with a 108 billion dollar all-cash offer for the entire network, including the cable division, at $30 per share. This instantly surpassed Netflix’s valuation and reset the stakes.

Comcast (CMCSA) had entered the bidding earlier but was outbid in previous rounds, and no new entrants have emerged since.

Then came the plot twist. On December 8, Paramount Skydance, led by David Ellison, son of Oracle co-founder Larry Ellison, launched a hostile tender offer that bypassed WBD’s board altogether. The proposal values WBD at 108.4 billion dollars in enterprise value, or 30 dollars per share in cash, representing a 139 percent premium to WBD’s pre-rumour share price. The offer includes all assets, even the cable arm, which is estimated to be worth roughly 20 to 25 billion dollars after a potential spin-off.

Paramount argues that its bid delivers 18 billion dollars more in immediate cash than Netflix, offers a faster closing timeline of 10 to 12 months, and faces fewer regulatory hurdles because it avoids the vertical-integration concerns that Netflix’s deal would trigger.

WBD responded cautiously, stating it will formally review the offer within 10 business days, meaning shareholders should expect an update by December 19, and advising investors not to take any action until that review is complete.

Show Me the Money

WBD’s appeal stems from its iconic intellectual property, world-class production infrastructure, and entrenched market position. Its content library alone, spanning DC Comics, Harry Potter, and Game of Thrones, is regarded as one of the most valuable in global media, with analysts estimating 6 to 10 billion dollars in potential synergies for any acquirer.

Paramount’s all-cash premium will be difficult for competitors to match. Not only does it deliver faster, more certain payouts to shareholders, but Netflix’s equity-based offer is tied to the future performance of NFLX shares, introducing additional market risk that some investors may be unwilling to accept.

The Investors Takeaway for WBD

For long-term investors holding Warner Bros Discovery, the stock has delivered exceptional gains, up roughly 185% over the past six months. Shares now trade near $27, not far from Paramount’s $30-dollar offer price. At this stage, the rally is being fuelled by takeover momentum and deal speculation rather than fundamentals.

One interesting angle to watch is whether Amazon emerges with a surprise bid. WBD’s library and production capabilities could still add significant value to Amazon Prime Video, and a strategic acquisition like this would immediately strengthen Amazon’s streaming ecosystem.