Paramount Challenges Netflix; Trump Flags Antitrust Concerns Over Proposed Merger: Paramount has escalated its challenge to Netflix by presenting a richer, all-cash proposal directly to Warner Bros. Discovery (WBD) shareholders. This bold move pressures investors to reconsider the Netflix agreement approved by WBD’s board last week. As a result, a fierce bidding battle may emerge over one of Hollywood’s most valuable entertainment groups, home to HBO, CNN, and major cable networks.
Paramount Pushes Cash Certainty
Paramount CEO David Ellison urged investors to think beyond complex structures and evaluate what he called “cash certainty.” In his CNBC interview, Ellison highlighted that Paramount’s plan offers a straightforward purchase of all WBD assets, including cable channels such as CNN.
By contrast, Netflix only aims to buy Warner Bros. and HBO, excluding the cable businesses and planning a later spinoff, which adds uncertainty. Ellison emphasized:
“We are offering shareholders $17.6 billion more cash than the deal they currently have signed up with Netflix… cash is still king.”
Offer Breakdown: Paramount vs. Netflix
Paramount’s proposal sets clear numbers:
- $30 per WBD share, entirely in cash, to acquire the full company.
- Netflix’s rival offer values WBD at $27.75 per share, consisting of
- $23.25 in cash + $4.50 in Netflix stock,
- while excluding key cable channels like CNN.
WBD acknowledged the public bid, stating it will evaluate the approach and respond within ten business days. The board must weigh offer value, regulatory challenges, deal certainty, and penalties for abandoning the Netflix contract.
Regulatory Hurdles May Shape the Outcome
Ellison directly questioned the feasibility of combining Netflix—already the world’s largest subscription streaming platform—with HBO Max, ranked third. He said regulators may view such dominance as risky for market competition.
Former President Donald Trump also mentioned antitrust concerns, noting that Netflix holds a “big market share,” and he suggested the merger could raise regulatory alarms. Trump indicated he would have a voice in whether a Netflix–Warner Bros. deal proceeds.
Financing Power: Paramount’s Cash Advantage
Paramount’s all-cash proposal appears well financed. The bid is supported by the Ellison family and RedBird Capital, who have committed to backstop the full $40.7 billion equity need. Reports indicate significant support may come from sovereign wealth funds in Saudi Arabia, Abu Dhabi, and Qatar, as well as investments from Jared Kushner’s Affinity Partners.
What Comes Next?
WBD’s shareholders face a defining moment. They must choose between:
- Paramount’s full-cash, full-company acquisition, promising transparency and certainty,
or - Netflix’s partial acquisition, with complex equity components and potential regulatory headwinds.
As competition intensifies, the future of a historic Hollywood powerhouse may hinge on which suitor best protects shareholder value while navigating merger scrutiny.
