Paramount Skydance has launched a hostile £81bn rival bid for Warner Bros’ film and TV studios despite a £54bn takeover by Netflix being agreed.

Paramount, who lost out in the bidding process alongside Comcast, subsequently made a complaint that Netflix was unfairly favoured during negotiations.

Now it has taken more aggressive action with a proposed deal backed by financing from Affinity Partners – the investment firm run by Jared Kushner, son-in-law of US President Donald Trump – several Middle Eastern government investment funds and Larry Ellison, father of Paramount boss David Ellison.

Any deal will not include Warner Bros’ Discovery Global division, which includes CNN and TNT Sports.

Commentators say the traditional film and TV industry sees any successful Netflix deal as a threat – seeing as the world’s biggest streaming platform would own one of Hollywood’s largest and most iconic studios.

Warner Bros Discovery’s board of directors said it would review Paramount’s offer but is still recommending the Netflix deal for now.

As well as its high-profile film studio, Warner Bros’ portfolio includes HBO, the HBO Max streaming platform and DC Studios.

The deal, not expected to close until late 2026 or 2027, is likely to be closely scrutinised by competition regulators in the United States and UK.