Netflix has publicly criticised Paramount’s proposed $108 billion takeover of Warner Bros Discovery questioning the financial credibility of the rival bid and highlighting concerns over Paramount’s debt burden.
Speaking to the Financial Times, Netflix co-chief executive Greg Peters said Paramount’s offer “doesn’t pass the sniff test,” arguing that the studio is already weighed down by significant debt and lacks broad shareholder backing.
“Paramount already is saddled with quite a lot of debt,” Peters said.
He added that financing a $30-per-share offer through additional borrowing would be “pretty crazy.”
Netflix, which has tabled an all-cash bid valued at $82.7 billion, says its proposal offers greater certainty and a faster path to approval.
According to the company, the structure of its bid could allow WBD shareholders to vote as early as April.
If successful, the acquisition would place Warner Bros’ century-old film studio and HBO’s vast content library under Netflix’s control. The catalogue includes globally recognised franchises such as Game of Thrones and Harry Potter.
Netflix has drawn a clear contrast between the two offers, emphasising financial structure as a key differentiator. Peters said Netflix’s balance sheet allows it to pursue the deal without taking on risky leverage.
“Our bid is straightforward and fully funded,” he said, noting that Netflix does not need to rely on complex borrowing arrangements to complete the acquisition.
He also suggested that Paramount’s bid would struggle without backing from Oracle co-founder Larry Ellison.
“Without Larry Ellison’s personal financing, Paramount would have no chance in hell of pulling this off,” Peters said.
Paramount’s offer combines debt and equity, with $55 billion in debt and about $40 billion in equity financing reportedly supported by Ellison, the father of Paramount CEO David Ellison.
However, the company has so far secured only around 7 per cent of WBD shares through its tender offer, far below the 50 per cent threshold required to gain control.
Market analysts have raised doubts about Paramount’s ability to raise its offer further, given its existing leverage and debt exposure.
Netflix, meanwhile, continues to expand its global footprint, boasting about 325 million subscribers worldwide. The streaming giant argues that its all-cash bid reflects financial discipline and removes uncertainty for shareholders.
Industry watchers say a Netflix–WBD merger could significantly alter Hollywood’s business model. The combined company would unite Netflix originals such as Stranger Things and Squid Game with Warner Bros’ legacy franchises, potentially reshaping how films and series are produced and distributed.
Reports suggest Netflix may reduce exclusive theatrical release windows or prioritise direct-to-streaming releases, a strategy that could disrupt traditional cinema revenue streams.
Paramount has pushed back against Netflix’s criticism. Gerry Cardinale, founder of RedBird Capital and a major Paramount Skydance shareholder, dismissed Netflix’s proposal as “smoke and mirrors.”
He argued that Netflix’s bid ultimately shifts “billions of dollars of debt” onto WBD’s Discovery Global spin-off, describing it as “the Harry Houdini of deals.”
