In an unexpected twist, Warner Bros. Discovery finds itself at the center of a battle that could reshape the global media landscape.
Just days after agreeing to a landmark asset sale to Netflix, the company is confronted with an even more lucrative, all-cash offer from Paramount Skydance.
This dramatic turn of events has set the stage for a high-stakes showdown involving Warner Bros. Discovery’s board, regulators, and the watching world.
What will happen next, and who will ultimately walk away with the prize? And how does Jared Kushner fit into all of this? This pivotal moment marks the beginning of an unprecedented corporate rivalry.
Billion-Dollar Clash
Paramount Global and Skydance have launched an all-cash tender offer valuing Warner Bros. Discovery at approximately $108.4 billion, or $30 per share, one of the largest media bids ever attempted.
The proposal arrived just after Warner Bros. Discovery backed a separate Netflix transaction, which values the company at roughly $82.7 billion in enterprise value, comprising a mix of cash and stock.
Investors now face a stark choice between immediate cash and a more complex breakup plan.
Kushner’s Affinity Partners Enters the Race
Talk of a Warner Bros. Discovery sale intensified after the company signaled in October it would explore “strategic alternatives,” drawing interest from Netflix, Paramount Skydance, and Comcast.
Second-round bids in late November split the field: Netflix and Comcast focused on the studio and streaming assets, while Paramount Skydance consistently pushed to buy the entire company, including its cable networks. That strategic divide set the stage for today’s showdown.
Notably, Jared Kushner’s Affinity Partners joined the bidding group as part of a broader coalition, positioning itself alongside Gulf state investors to challenge Netflix’s dominance in the streaming wars.
Pressures On Streaming
All the bidders are responding to intense pressure in the streaming industry. Growth has slowed in North America, content costs are soaring, and investors now prioritize profits over subscriber gains.
Warner Bros. Discovery carries heavy debt from its own 2022 merger, while Netflix is shifting from a “builders, not buyers” stance toward large acquisitions.
Consolidation has become a central strategy as studios race to gain scale against Amazon and Disney.
Hostile Bid Revealed
On 9 December 2025, Paramount Skydance escalated matters by launching a hostile takeover bid for all of Warner Bros. Discovery, directly presenting its $30-per-share cash offer to shareholders.
The move followed six previous approaches to the Warner Bros. Discovery board that were rejected. The tender offer has a deadline of January 8, 2026, with the WBD board given 10 business days to respond formally.
Trade and news outlets describe the proposal as a classic hostile tender, which bypasses management after earlier negotiations stalled, putting the company’s entire future in the hands of its shareholders.
Netflix Deal In Jeopardy
Just days before Paramount Skydance’s offer, Warner Bros. Discovery agreed to sell its studios and streaming assets, including HBO Max, to Netflix in a transaction valuing the company at an enterprise value of $82.7 billion ($72 billion in equity value).
That deal would spin off the firm’s global linear networks into a separate entity. Netflix Co-CEO Ted Sarandos stated, “Today’s move was entirely expected.
We have a deal done.” The surprise hostile bid now collides with Netflix’s plan, threatening to derail or radically reshape the announced asset sale.
CNN In Limbo
For CNN and other Warner‑owned cable networks, the dueling deals create deep uncertainty. Netflix’s agreement excludes the linear channels, initially offering CNN some relief from direct tech‑company control.
Paramount Skydance’s hostile bid, by contrast, explicitly includes the cable portfolio.
If successful, it could place CNN under the same corporate roof as CBS News, raising editorial, competitive, and regulatory questions about a combined news powerhouse.
International Backing and Strategic Partners
Financing for the Paramount Skydance offer comes from a sophisticated mix of equity and debt. Key equity backers include: Saudi Arabia’s Public Investment Fund (PIF), Qatar Investment Authority (QIA), Abu Dhabi’s L’imad Holding Company, and Jared Kushner’s Affinity Partners.
The bid is backstopped by $252 billion in Oracle Corporation stock held by the Ellison Trust (approximately 1.16 billion shares), providing a substantial financial cushion.
Middle East sovereign wealth funds have agreed to forgo governance rights and board representation to sidestep CFIUS (Committee on Foreign Investment in the United States) jurisdiction.
Notably, Tencent, which had previously committed approximately $1 billion, is no longer part of the financing structure and has withdrawn entirely from the bid, citing national security concerns. Bank of America, Citigroup, and Apollo Capital Management have committed up to $54 billion in debt financing.
Presidential Involvement and Regulatory Concerns
Any outcome is likely to face intense antitrust scrutiny from the incoming Trump administration. President Trump has warned that a Netflix–Warner Bros. Discovery combination “could be a problem” and stated he would be involved in assessing any final deal.
Analysts say a Netflix–Warner Bros. Discovery combination would draw particular attention, further consolidating power in the subscription streaming sector.
Paramount Skydance argues its proposal is more “pro‑competitive,” pairing Warner Bros. Discovery’s studio and Max service with Paramount+ to challenge Netflix, Amazon, and Disney. Both paths could trigger regulatory reviews in the United States and abroad, potentially delaying or reshaping the deals.
Breakup Fees and Deal Protection
Buried in the Netflix agreement are significant termination costs: breakup fees totaling up to $5.8 billion if regulators block the transaction, one of the largest such penalties ever.
If Warner Bros. Discovery were to walk away for a rival offer, such as Paramount Skydance’s, it would owe Netflix approximately $2.8 billion.
Legal experts note these unusually high fees—representing 8% and 3.4% of deal value, respectively—could themselves invite scrutiny under Delaware corporate law.
Shareholder Dilemma
Warner Bros. Discovery investors must now weigh cash certainty against strategic bets. Paramount Skydance’s hostile tender promises $30 in cash per share and claims to deliver approximately $18 billion more in aggregate cash than the Netflix route (which values the company at $27.75 per share, including mixed consideration).
Netflix’s structure offers a mix of cash and its stock, plus exposure to a spun‑off TV networks company. Early signals indicate that some major shareholders are leaning toward Paramount Skydance, while others favor Netflix’s growth story and technology exposure.
Board Under Fire
Paramount Skydance has publicly questioned whether Warner Bros. Discovery’s board ran a fair process after six overtures were rejected, accusing it of favoring Netflix in earlier bidding rounds.
In response to the hostile tender, the board has urged shareholders to take no immediate action while it reviews the offer “in accordance with its fiduciary duties” and its existing agreement with Netflix.
The board has 10 business days to respond formally. That review will determine whether the company stays the course or attempts to pivot toward the all-cash bid.
Strategic Visions
Paramount Skydance pitches its offer as a way to create a “scaled Hollywood champion,” keeping both studios intact and bolstering theatrical releases alongside its streaming efforts.
The company highlights planned costs of over $6 billion and increased investment in content.
Netflix’s plan centers on integrating Warner Bros. Discovery’s prolific film and TV library into its global platform, arguing the combination would create a powerful, data‑driven streaming giant. Each path implies a very different future for Warner’s creative culture.
Skeptics Weigh In
Market watchers are skeptical that either transaction will proceed exactly as proposed. Some analysts question whether regulators will allow Netflix to absorb such a large studio, while others doubt Paramount Skydance can maintain its rich cash offer if financing conditions tighten.
Creative stakeholders are divided too: some prominent filmmakers back Paramount Skydance’s theatrical focus, while critics warn that any mega‑merger risks job cuts and franchise fatigue.
The Future Of Hollywood
Whatever Warner Bros. Discovery decides, this contest signals a turning point for Hollywood. The outcome could determine whether traditional studio-based conglomerates or tech-driven streamers dominate the next decade of the entertainment industry.
It will also test how far regulators and courts are willing to let consolidation go. As shareholders, creators, and viewers await a verdict, one question looms: which vision will define the future of global storytelling?
Sources:
Paramount press releases December 2025
Reuters business reporting December 2025
Bloomberg financial news December 2025
Wall Street Journal media coverage December 2025
Variety entertainment reporting December 2025
CNBC financial analysis December 2025