Paramount has launched a hostile all-cash tender offer to acquire Warner Bros. Discovery for $30 per share, valuing the company at $108.4 billion and challenging a previously accepted deal between WBD and Netflix.

The offer represents a 139% premium over WBD’s September share price of $12.54. Paramount described Netflix’s earlier bid as “inferior and uncertain.”

Paramount CEO David Ellison said:

“WBD shareholders deserve an opportunity to consider our superior all-cash offer.”

Last week, Warner Bros. Discovery accepted Netflix’s $27.25-per-share bid, worth about $82.7 billion, for its studio and streaming arm, HBO Max. Paramount’s new bid covers the entire WBD business, including cable networks such as CNN, TBS, and Discovery Channel.

 

In a statement, Paramount said:

“Our offer provides a superior alternative to the Netflix transaction, which offers inferior and uncertain value and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process.”

 

Ellison added:

“We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry.”

 

Following the announcement, Warner Bros. Discovery shares rose over 6%, Paramount climbed more than 3%, while Netflix fell over 3% in early trading.