Paramount Launches $108 Billion Hostile Bid to Block Netflix’s Acquisition of Warner Bros

Last week brought shocking news that shook the streaming and film industry: Netflix acquired the century-old Warner Bros, including its HBO service.

This move, beyond its effect on the film world, would place Netflix in a dominant position in the streaming market by removing one of its main competitors in one stroke.

The deal came from a public auction where several companies showed interest in acquiring the historic studio. Among them was Paramount, but in the end, Netflix won the bid for $83 billion.

Paramount Strikes Back With a $108 Billion Hostile Takeover Bid

However, it seems that Paramount is not giving up. According to reports, the company has launched a hostile takeover bid worth $108 billion to acquire all of Warner Bros.

A hostile takeover bid happens when a company tries to buy another without the consent of its management. The offer is made directly to the shareholders in order to take control of the company.

It is worth remembering that Warner Bros. had already rejected 12 previous offers from Paramount.

This operation also has political implications. Paramount is currently led by David Ellison, son of Larry Ellison (founder of Oracle) and a close friend of Donald Trump. In fact, Trump’s son-in-law is also said to be helping finance the deal.

If the hostile bid succeeds, Paramount would gain full control of Warner Bros., including CNN, which was not part of the agreement with Netflix. This would give Ellison and Trump’s circle significant media power — as Paramount already owns CBS.

Netflix Could Receive a $3 Billion Compensation

The Netflix acquisition deal is still waiting for regulatory approval. However, if it is canceled because of Paramount’s hostile offer, Warner Bros. and its new owner would need to pay Netflix $3 billion in compensation.