Paramount has launched a dramatic $108 billion hostile takeover bid for Warner Bros Discovery (WBD), directly challenging Netflix’s recently announced acquisition agreement and setting up one of the most consequential corporate battles Hollywood has seen in decades.

As reported by the Financial Times, the all-cash offer – valuing WBD at $30 a share – is being backed by a consortium of Middle Eastern sovereign wealth funds and by Jared Kushner’s Affinity Partners. Paramount argues its bid is financially superior, offering around $18 billion more in cash than Netflix’s agreed structure.

The move aims to persuade WBD shareholders who may be sceptical about Netflix’s ability to secure regulatory approval for its deal, which would place one of Hollywood’s biggest studios under a global tech giant.

Netflix announced last week that it had agreed to purchase WBD’s studio and streaming divisions – including Warner Bros, HBO Max and HBO – for $82.7 billion, in a complex transaction tied to the planned spin-off of Discovery Global, WBD’s cable assets. That bid valued WBD’s studio and streaming components at $27.75 a share.

Paramount’s rival offer, meanwhile, seeks to acquire the entire company – including cable channels such as CNN and Discovery – which it values far lower at $1 a share.

WBD said on Monday that it would “carefully review” Paramount’s proposal but that it was not altering its recommendation in favour of the Netflix agreement.

Shares reacted immediately, with WBD rising 4.4%, Paramount up 9%, and Netflix falling 3.4%.

Paramount CEO David Ellison framed the competing bid as the more realistic option, arguing that Netflix’s timeline of 12–18 months for regulatory approval was “unrealistic”. The offer includes $40.7 billion in equity commitments, backstopped by the Ellison family and RedBird Capital, with debt financing from Bank of America, Citigroup and Apollo.

The bid has quickly drawn political attention. US President Donald Trump told reporters he expected to review the competing proposals, saying he wanted to “do what is right,” without signalling support for either party.

Netflix remains confident its deal will proceed. Co-CEO Ted Sarandos described Paramount’s move as “entirely expected”, adding that Netflix planned to maintain Warner Bros’ theatrical model rather than scaling back film releases.

If WBD abandons its agreement with Netflix, it may be required to pay a $2.8 billion break fee.

WBD shareholders now face a high-stakes decision shaped by antitrust risk, valuation of cable assets, and confidence in Netflix’s long-term prospects. Shareholders have until January 8 to respond to Paramount’s tender offer, though the deadline may be extended.