Paramount Skydance has initiated a hostile takeover bid valued at $108.4 billion for Warner Bros. Discovery

Paramount Skydance has launched a hostile bid to acquire Warner Bros Discovery, shortly after Warner Bros entered into an agreement with Netflix.

Paramount proposes to purchase Warner Bros Discovery for $108.4 billion, offering $30 per share in cash. In contrast, Netflix's acquisition deal was valued at $27.75 per share for just the streaming and studio segments.

Currently, Netflix's stock has declined by 4.81%, while shares of Warner Bros Discovery have risen by 6%.

"Shareholders of WBD should be allowed to evaluate our all-cash offer directly," said Paramount CEO David Ellison.

"Our public proposal mirrors the conditions we've previously shared privately with the Warner Bros Discovery board, offering greater value and expediting completion.

"The board’s alternative offer presents a less favorable mix of cash and stock with uncertain outcomes for the Global Networks cable business’s future value and potential regulatory challenges. By addressing shareholders directly, we aim to enable them to maximize their investment.”

A week ago, Netflix revealed plans to acquire Warner Bros for $82.7 billion, a deal encompassing its gaming division. This followed a competitive bid initiated by Paramount Skydance's unsolicited proposal for Warner Bros Discovery, with Comcast also joining the fray before Netflix secured the lead.

Both Paramount Skydance's takeover attempt and Netflix's purchase of Warner Bros could undergo significant regulatory examination. BBC highlights President Trump's concerns over the deal's potential effects on Netflix's market dominance.