Paramount starts war with Netflix for Warner Bros. Discovery with $108.4 billion offer
On Monday, Paramount and Skydance announced a $108.4 billion bid to acquire Warner Bros. Discovery (WBD), just days after Warner agreed to Netflix's offer.
On Monday, Paramount and Skydance announced a $108.4 billion bid to acquire Warner Bros. Discovery (WBD), just days after Warner agreed to Netflix's offer.
Paramount went directly to WBD shareholders, offering $30 per share in cash only, TechCrunch reports . That’s $18 billion more in cash than Netflix’s offer, which offered $23.25 in cash and $4.50 in Netflix stock, for a total of $27.75 per share.
Paramount claims all of WBD, while Netflix's deal with the company only includes its Hollywood studios and streaming business. According to CNBC, these are the terms Paramount's WBD board rejected a week ago.
"We believe the WBD Board of Directors is considering an inferior proposal that exposes shareholders to the risk associated with a combination of cash and stock, the uncertain future trading value of Global Networks' linear cable business, and the complex regulatory approval process," Paramount CEO David Ellison said in a statement.
Paramount's offering is backed by equity financing from the Ellison family and private equity firm RedBird Capital, in addition to $54 billion in debt from Bank of America, Citi and Apollo.
Netflix emerged victorious on Friday, winning a competitive bidding war against Paramount and Comcast, but Paramount's bid will undoubtedly prolong the battle for one of Hollywood's most iconic studios — a fight that has been going on for months.
The proposed Netflix deal has already raised antitrust questions because it would combine two of the most popular streaming platforms into one. President Donald Trump has also said the deal "could be a problem" because of the combined companies' market share.
The deal between WBD and Paramount is likely to raise similar concerns as well.
Netflix has agreed to pay WBD $5.8 billion if the deal falls through. WBD will have to pay Netflix $2.8 billion if the deal falls through.
Netflix partners with Spotify to launch video podcasts on the platform in 2026
Netflix partners with Spotify to launch video podcasts on the platform in 2026
Read the country's main IT news in our Telegram
Read the country's main IT news in our Telegram
