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It is Christmas Eve in Philadelphia Pennsylvania. A Volkswagon Thing tricked out to look like Santa's sleigh drives by the Art Museum. It tours around downtown and ends up at the WPKP television studio, where nepoe baby Mark, a young news producer, is getting ready for a special live broadcast.
From out of the sleigh climb two Army Rangers dressed up as Santa Claus. They go over the edge and hijack the television studio. To get the attention of the Philadelphia police department their sleigh outside explodes to announce their arrival. The fact that they have the daughter of a United States Congressman hostage gets the attention of the nation's media. After a hostage dies this small local talk show finds itself with a global audience.
The Santas come with a gift for humanity. They are here to bring peace to America and understanding to the planet. The police are not amused and will not wait around for more hostages to be harmed. As the police prepare to charge, Santa and St. Nick drop some knowledge on the cops. They inform them that A, they have planted bombs wrapped like presents all over the city, and B, the studio is wired to leave no traces.
The world watches as a cat-and-mouse game of words and wits unfolds on Live TV. Santa and St. Nick say what they have to say. They lay out a plan and as wrong as what they are doing is, it becomes painfully obvious that they are right and there is no other option. As the showdown concludes, and the big picture finally comes into focus we realize that things were not as they seemed, and the airwaves of the world will never be the same.