Paramount Launches Hostile $108.4 Billion Bid for Warner Bros. Discovery, Challenging Netflix
Paramount makes a hostile $108.4 billion cash offer for Warner Bros. Discovery, surpassing Netflix's bid and drawing political and industry scrutiny.
- • Paramount offers $108.4 billion for Warner Bros. Discovery at $30 per share, exceeding Netflix's $72 billion offer.
- • Paramount’s cash offer is fully funded, contrasting with Netflix’s stock-inclusive proposal.
- • President Donald Trump expressed concerns about the merger’s impact on competition and will monitor regulatory reviews.
- • Netflix plans to combine Warner Bros’ content with its own to redefine global entertainment.
- • Paramount criticizes Netflix’s bid as inferior and aims to position itself as a more appealing buyer.
Key details
Paramount Skydance has intensified the battle for Warner Bros. Discovery (WBD) by making a hostile takeover offer valued at $108.4 billion, surpassing Netflix's recent $72 billion bid. Paramount's offer stands at $30 per WBD share, a 139% premium over WBD's September stock price, and notably exceeds Netflix's $28 per share offer. This strategic move followed Paramount’s earlier five attempts, all previously rejected by WBD's board, which had leaned toward Netflix’s proposal valuing the company at around $83 billion, including debt.
David Ellison, Paramount's president and CEO, criticized Netflix’s bid as "inferior and uncertain," highlighting Paramount's fully cash-funded offer compared to Netflix’s stock-inclusive deal. Paramount aims to acquire WBD wholly, unlike Netflix’s plan which includes only Warner Bros. and HBO Max. Ellison expressed confidence in regulatory approval, positioning Paramount as a preferable alternative in light of potential antitrust concerns.
The acquisition competition has sparked scrutiny from political figures, notably U.S. President Donald Trump, who underscored the massive market share Netflix would command with Warner Bros. and warned about its impact on market competition. Trump plans to closely monitor the Department of Justice’s evaluation process regarding the merger. The stakes involve implications for competition in the streaming market, where Netflix and Warner Bros. combined could capture 43% of the global streaming market, raising concerns about undue market concentration.
Netflix, having announced the transaction publicly, emphasized that the merger would redefine entertainment by merging Netflix’s streaming content with Warner Bros.’ iconic library, including classics like "Casablanca" and modern franchises such as "Harry Potter" and "Friends." Co-CEO Ted Sarandos stressed the mission to entertain worldwide audiences through a diverse content offering.
Paramount’s aggressive bid adds significant pressure as the industry watches closely. The deal’s outcome could reshape the entertainment landscape, with potential substantial effects on production, competition, and jobs within the sector.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.