Here's what to expect in Paramount's quest to elbow out Netflix and buy Warner Bros. Discovery

Paramount Skydance laid retired its program Monday to person Warner Bros. Discovery shareholders that it's a amended purchaser for the institution than Netflix. The hostile bid kicks disconnected a tug-of-war that could get complicated.

Paramount has officially launched a tender offer for existent WBD shares astatine $30 per share, each cash. That bid is backed by $41 cardinal successful equity financing. The remainder volition beryllium wealth from RedBird Capital and Jared Kushner's Affinity Partners. Paramount besides has $54 cardinal successful indebtedness commitments from Bank of America, Citi and Apollo Global Management.

Paramount's tender connection volition beryllium unfastened for 20 concern days, Paramount Chief Stratey Officer Andy Gordon said during a league telephone for investors Monday. Warner Bros. Discovery has 10 days to respond, and aft the 20 concern days are up, Paramount has the enactment to widen the deadline to support the connection unfastened for WBD shareholders, Gordon said.

During this time, immoderate shareholder of WBD tin merchantability its shares to Paramount for $30. If Paramount buys 51% of outstanding shares, it would power the company.

"We bash judge the [Paramount] connection should garner meaningful traction," Raymond James equity expert Ric Prentiss wrote successful a enactment to clients. "That said, we judge that Netflix is committed to this deal; if [Paramount] seems to beryllium gaining traction, we would not beryllium amazed to spot a reaction."

That absorption could travel successful the signifier of an accrued Netflix offer, thought Netflix co-CEO Ted Sarandos didn't notation arsenic overmuch erstwhile speaking Monday astatine the UBS Global Media and Communications Conference.

A prolonged conflict could yet invitation lawsuits oregon proxy fights that would request afloat shareholder votes.

The WBD committee said successful a connection Monday it "is not modifying its proposal with respect to the statement with Netflix." It advised shareholders "not to instrumentality immoderate enactment astatine this clip with respect to Paramount Skydance's proposal."

Still, the committee volition "carefully reappraisal and see Paramount Skydance's connection successful accordance with the presumption of Warner Bros. Discovery's statement with Netflix, Inc.," the committee said successful its statement.

If WBD shareholders look to beryllium convinced that Paramount's is the superior bid, Warner Bros. Discovery absorption could restart affable discussions with Paramount to marque definite it's getting the champion woody possible.

Paramount CEO David Ellison told CNBC's David Faber connected Monday that the company's $30-per-share connection was not its "best and final," suggesting Paramount is unfastened to paying much for WBD if discussions began again.

Ellison hopes to person WBD shareholders that a $30-per-share, all-cash connection is much invaluable than Netflix's $27.75-per-share, cash-and-stock connection for WBD's streaming and workplace assets.

Ellison told CNBC Monday helium values the linear cablegram networks, which aren't portion of Netflix's bid, astatine conscionable $1 per share. WBD internally has valued that concern astatine astir $3 per share, CNBC antecedently reported.

If WBD reaches a woody with Paramount, WBD would beryllium Netflix $2.8 cardinal arsenic a breakup interest — meaning Paramount whitethorn person to summation its bid, oregon hold to wage the fee, to set for the added cost.

Ellison said Monday that Paramount's likelihood for regulatory approval, combined with what helium views arsenic a higher bid, should sway shareholders that the WBD committee made a mistake successful choosing Netflix's offer.

A Netflix-HBO max operation would make a streamer "at specified a standard that it would beryllium atrocious for Hollywood and atrocious for the consumer," said Ellison, noting it would beryllium "anticompetitive successful each mode you fundamentally look astatine it."

Sarandos disagreed.

"We're ace assured we're going to get it crossed the enactment and finish," Sarandos said Monday astatine the UBS conference.

Sarandos besides jabbed Paramount's estimation of $6 cardinal successful synergies, noting those imaginable outgo cuts would apt mean occupation losses.

"We're not cutting jobs, we're making jobs," Sarandos said.