Paramount’s Hostile Takeover Push Intensifies As Netflix Shows Cracks

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The competition to acquire Warner Bros. Discovery is heating up. According to a new report in the New York Post, Paramount and Skydance—supported by the Ellison family—believe they are gaining an edge over Netflix in the bidding process.

According to Gasparino, Paramount is willing to significantly increase its offer, more than covering the $2.8 billion penalty for ending the current deal. He also states that Paramount is confident shareholders will ultimately support their revised bid.

Even though some news outlets are reporting it, Gasparino believes worries that the Trump administration would block the Paramount-Skydance deal are exaggerated. The bigger issue in Washington is Netflix’s potential to dominate the streaming market – currently controlling about a third of it – and regulators are paying close attention.

Sources indicate Paramount Global and Skydance are becoming more optimistic about outbidding Netflix for a controlling stake in Warner Bros. Discovery. Initial discussions suggest they’re prepared to increase their offer significantly, easily covering the $2.8 billion break-up fee – estimated at around $1 per share, and potentially more. Reports of opposition to the Skydance bid from the Trump administration are being downplayed by government sources. The primary concern remains Netflix’s substantial control of roughly one-third of the streaming market. Warner Bros. Discovery shareholders are expected to benefit, potentially receiving an extra dollar per share with a final bid from Ellison around $32 per share. As one person involved in the deal put it, Warner Bros. Discovery CEO David Zaslav has expertly navigated these negotiations.

Six Sweetened Bids and Gulf Money Behind Paramount

Bill Cohan at Puck News reported on the ongoing fight for control, noting that the Ellisons have increased their offer for Paramount six times since they first began trying to take over in September. This effort is being supported by significant investment from foreign sources, just as our sources previously indicated.

According to Cohan:

Larry Ellison is putting up nearly $12 billion.

An additional $24 billion in investment is coming from Saudi Arabia’s Public Investment Fund (PIF), Qatar, and Abu Dhabi. These groups have agreed to invest without asking for positions on Paramount’s board or any control over the company’s decisions, probably to avoid a detailed review by U.S. national security officials. Despite this, two Democratic lawmakers are now requesting that Paramount Skydance provide information about what they consider to be significant national security risks.

Jared Kushner, who is married to Donald Trump’s daughter, is securing another $200 million for his firm, Affinity Partners, with the majority of the funding coming from Saudi Arabia.

When tech giant Tencent backed out of the agreement, private investment firm RedBird provided the $1 billion needed to complete it.

Paramount has arranged $54 billion in financing from Bank of America, Citigroup, and Apollo.

Ultimately, the Ellisons have the financial resources, support, and organization needed to finalize the acquisition, and they seem prepared to continue investing. Cohan believes increasing their offer to $34 per share would likely secure the agreement.

Netflix’s Position Weakens

Netflix claims to have a $59 billion line of credit to finance its acquisition. However, its stock price has been falling since the deal was announced, leading to concerns about whether that funding is truly secure.

According to Puck, Netflix’s stock is at risk of being downgraded to junk status. This would significantly increase the cost and complexity of acquiring Warner Bros. Discovery.

If Netflix can’t stabilize its share price, its entire structure for buying WBD becomes shaky.

The Clock Is Ticking Toward December 22

The next key milestone: December 22 — WBD must formally respond to Paramount’s hostile tender offer.

Shareholders will finally hear whether Zaslav and the board recommend:

  1. Accepting Paramount’s all-cash bid
  2. Sticking with Netflix
  3. Or forcing both sides to raise their offers even further

Based on Warner Bros. Discovery’s stock performance and reports from financial journalists, many on Wall Street expect Paramount to increase its price further.

What began as a simple company purchase has quickly become a major conflict, with billionaires, investment funds, international banks, and a struggling movie studio all battling for control.

And if Gasparino and Cohan are right, the Ellisons are outmuscling Netflix at every step.

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2025-12-11 02:32