Paramount Skydance has launched a $108.4 billion hostile bid for Warner Bros., challenging Netflix's $72bn buyout plan.
Paramount said its proposed transaction for the entirety of Warner Bros. Discovery (WBD), including its Discovery Global segment, is a "clearly superior alternative".
Netflix would acquire Warner Bros.' film and TV studios, which would be separated from Discovery Global in the third quarter of next year.
David Ellison, chairman and CEO of Paramount, said Warner Bros. Discovery shareholders "deserve an opportunity to consider our superior all-cash offer for their shares in the entire company".
"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 believe the WBD board of directors is 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.
"We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares."
Paramount making direct cash offer
Paramount is making a direct cash offer to Warner Bros. shareholders of $30 (£22.50) per share.
Netflix, meanwhile, is offering $27.75 per share, which will see each Warner Bros. shareholder receive $23.25 in cash and $4.50 in shares of Netflix common stock.
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."
How the sale of Warner Bros. will impact its location-based entertainment (LBE) offering is uncertain at this point.
Warner Bros. licenses its name and characters to theme parks such as Warner Bros. World Abu Dhabi, and operates the Harry Potter studio tour attractions.
Warner Bros. brands also feature at Universal and Six Flags theme parks.
