Paramount Intensifies Takeover Battle With Direct Appeal to WBD Shareholders

Paramount Skydance Corporation has escalated its takeover campaign for Warner Bros. Discovery (WBD) by directly addressing WBD shareholders in a newly issued letter. In the communication, Paramount urges investors to back its $30-per-share all-cash offer, positioning it as a clearer, more lucrative alternative to the agreement WBD has already entered into with Netflix.

The company argues that its proposal delivers higher immediate value and a more secure path to closing. According to Paramount, the Netflix arrangement, structured around a mix of cash, stock, and debt, creates unnecessary complexity and uncertainty for investors. Paramount has emphasized that shareholders can signal their support by tendering shares, thereby pressuring the WBD board to reconsider its stance.

Paramount’s letter follows weeks of frustration within the company, as executives believe their initial private proposal was not given proper consideration before WBD began exclusive talks with Netflix. The company maintains that the Netflix deal carries greater regulatory risk and could take longer to finalize, potentially reducing the payout shareholders ultimately receive.

Clashing Strategies as Paramount and Netflix Vie for WBD

The letter marks a turning point in a rapidly intensifying corporate battle between Paramount Skydance and Netflix. Paramount’s hostile offer values WBD at approximately $108 billion in enterprise value, significantly higher than the estimated valuation under the Netflix proposal.

Netflix’s plan involves acquiring a broad set of Warner Bros. Discovery assets, including Warner Bros. studios, HBO, HBO Max, and the gaming division, in a deal estimated at around $84 billion. While Netflix has pitched the arrangement as strategically vital for strengthening its content ecosystem, Paramount argues its competing offer is not only financially stronger but also more straightforward and faster to execute.

Paramount has also raised red flags regarding potential antitrust hurdles if Netflix and WBD were to merge their content libraries. Executives warn that combining Netflix’s global streaming footprint with WBD’s premium entertainment brands could trigger prolonged regulatory scrutiny. Paramount positions its own offer as facing fewer such obstacles, due to its relatively smaller footprint in the global streaming market compared to Netflix.

WBD’s board has responded by stating it will undertake a formal evaluation of Paramount’s renewed proposal and provide shareholders with a recommendation within roughly ten business days. Until then, the board has advised investors not to act on the new offer.

High-Stakes Gamble Could Reshape Hollywood

The struggle for control of Warner Bros. Discovery reflects a broader race for consolidation across Hollywood and the global streaming industry. Paramount CEO David Ellison has emerged as the leading figure in the campaign, framing the bid as a pivotal moment for shaping the future of premium entertainment.

Industry observers view Paramount’s decision to appeal directly to shareholders as a rare but telling move, one typically deployed only in high-stakes takeover scenarios. With WBD holding one of the world’s richest content libraries, including iconic film franchises, premium television assets, and valuable intellectual property, the outcome of this battle could significantly reshape the entertainment landscape.

As the review period moves forward, analysts expect heightened negotiations, potential counteroffers, and further pressure on the WBD board. Investors, competitors, and industry leaders will now be watching closely to see whether Paramount’s aggressive strategy succeeds in disrupting WBD’s path toward a Netflix deal or triggers an entirely new phase in Hollywood’s consolidation era.