Paramount has launched a $108.4bn (£81.4bn) hostile takeover bid for Warner Bros Discovery, challenging Netflix’s $72bn (£54bn) deal.

Paramount CEO David Ellison said the Warner Bros Discovery board of directors is pursuing an “inferior proposal” by accepting the Netflix deal, which was confirmed on Friday (5 December).

The company said today (8 December) it was going straight to Warner Bros shareholders with a $30 per share in cash offer for the entirety of the company, including its Global Networks segment, after the board of directors “never engaged meaningfully” with six proposals to acquire the company over the course of 12 weeks.

Paramount said it has offered to pay shareholders $18bn (£13.5bn) more in cash compared with Netflix’s offer, which values Warner Bros at $27.25 a share using a mixture of cash and stock.

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By taking the offer directly to Warner Bros shareholders, Paramount said it has “the opportunity to pursue this clearly superior alternative” and by accepting Netflix’s deal, it would be pursuing an “inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process”.

“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” added Ellison.

“Our public offer, which is on the same terms we provided to the Warner Bros Discovery board of directors in private, provides superior value, and a more certain and quicker path to completion.

“We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximise the value of their shares.”

Paramount believes the combination of Paramount and Warner Bros would create a “unique global media company”, which will have stronger support of movie theatres, pro-competitive, stronger linear networks and a broad sports rights portfolio.

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On Friday, Netflix confirmed it had struck a definitive agreement to acquire Warner Bros, including its film and television studios HBO Max and HBO, following a “competitive” process.

It would bring iconic Warner Bros IP under Netflix’s ownership, including the Harry Potter franchise, Friends – which was expected to leave Netflix by the end of 2025 – and Game of Thrones.

“We have the innovation, global reach and the best-in-class streaming service to bring these franchises, brands, shows and movies to a larger audience than ever before, and that’s why we think this deal makes so much sense,” Ted Sarandos, co-CEO of Netflix told investors last week.