On Monday, Paramount Skydance made a hostile $108.4 billion bid to acquire Warner Bros Discovery (WBD), following Netflix’s $72 billion offer for the studio and its streaming service, potentially ending a duopoly and creating a monopoly. Paramount proposed a $30-per-share cash tender offer for WBD, backed by $41 billion in equity financing, funds from Jared Kushner’s Affinity Partners, Middle Eastern government-backed investors, and support from the Ellison family. Unlike Netflix’s bid, which targets WBD’s film and TV studios, HBO, and HBO Max, Paramount’s offer includes the company’s cable networks.
Paramount’s tender will remain open for 20 business days, with WBD required to respond within 10. CEO David Ellison indicated the $30 offer may not be final, signaling a willingness to increase the bid if needed to gain a 51% stake.
Netflix, committed to a $27.75-per-share cash-and-stock deal, has not indicated a higher counteroffer. CEO Ted Sarandos affirmed satisfaction with their agreement, citing benefits for shareholders, consumers, and industry jobs. WBD said it will review Paramount’s offer but currently maintains its recommendation for the Netflix deal, cautioning shareholders against action. Warner Bros shares rose 4.4%, Paramount 9%, and Netflix fell 3.4%.