In a surprise move, Paramount has made a hostile bid to buy Warner Bros. Discovery, entering a direct competition with Netflix that could reshape the future of the American entertainment industry.

Paramount said it had approached Warner Bros. shareholders directly and offered them about $74.4 billion, or $30 in cash per share. Unlike Netflix, Paramount also said it was willing to buy Warner Bros.’ cable assets and urged shareholders to reject Netflix’s offer.

The company says its offer is worth about $18 billion more than Netflix’s, and believes Netflix’s valuation of Warner’s cable assets is based on unrealistic projections.

This is the same offer that Warner Bros. had previously rejected in favor of a deal with Netflix, a deal that, if finalized, would change the competitive landscape in Hollywood.

Paramount has strongly criticized Netflix's offer, saying the deal would subject Warner shareholders to a lengthy, multi-layered regulatory review process with an uncertain outcome.

"We believe our proposal will help create a stronger Hollywood and benefit the creative community, consumers and the film industry," Paramount Chairman David Ellison said in a statement.

He believes the deal will increase competition, investment in content and the number of films released.

Meanwhile, Netflix announced last week that it would buy Warner Bros. Discovery in a cash-and-stock deal valued at about $82.7 billion and expected to close within the next 12 to 18 months.

But US President Donald Trump has expressed concerns about the deal, saying the deal could be problematic because of the combined size and market share and that the government would intervene in its review.

Some experts have also pointed to Paramount’s close ties to Trump, as the company’s CEO is the son of longtime Trump supporter Larry Ellison.

In another move, Paramount this year bought the news site The Free Press and appointed its founder, Barry Weiss, as editor-in-chief of CBS News, a move that drew a lot of attention given the network’s history.

The offer to buy Paramount is valid until January 8, 2026, unless extended.

Shares of both Warner and Paramount rose between 5 and 6 percent in early trading, while Netflix shares fell slightly.

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