Paramount Skydance Fires Off Hostile $108.4 Billion Bid For Warner Bros. Discovery as Netflix Deal Looms
The Warner Bros. Discovery saga just took another wild turn. While Netflix appeared to be cruising toward a massive acquisition of the storied studio, Paramount Skydance has stepped in with a staggering hostile bid of its own.
Entertainment fans have been watching this merger drama unfold for weeks, but this move sends the whole situation into unpredictable territory.
Netflix and Warner Bros. Discovery recently agreed to an acquisition valued at $72 billion with an enterprise value of $82.7 billion. That alone shook the industry, yet Paramount Skydance clearly wasn’t ready to let Warner Bros. slip away.
David Ellison has been openly interested in expanding the company’s footprint and wasn’t about to walk off the field without a fight.
Paramount Skydance is now pushing to buy Warner Bros. Discovery with an all cash tender offer at $30 dollars per share. Their proposal isn’t structured the same way as Netflix’s plan. Paramount intends to acquire the company’s entire television operation which includes CNN, TBS, and TNT.
Netflix is only targeting Warner Bros. Pictures and HBO. The Paramount Skydance offer come in at an enterprise value of $108.4 billion and the company insists this deal is far stronger for shareholders.
In a statement released today, Parmaount said: "Paramount’s strategically and financially compelling offer to WBD shareholders provides a superior alternative to the Netflix transaction, which offers inferior and uncertain value and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome, along with a complex and volatile mix of equity and cash."
The $30 dollar per share offer is backed by Oracle co founder Larry Ellison, David Ellison’s father, along with RedBird Capital Partners.
Ellison followed up with a direct message to investors: "WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company.
“Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion."
"We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process.
“We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares."
This corporate showdown isn’t happening in a vacuum. Political attention has suddenly zeroed in on the Netflix plan. Last night, President Donald Trump voiced concerns over Netflix acquiring Warner Bros. Discovery’s studios and cable and streaming assets.
He pointed out that Netflix has a "big market share" and that the combined footprint "could be a problem." He went on to say the platform already holds a "very big market share" that would "go up by a lot" if the acquisition goes through.
Trump also confirmed that Netflix co CEO Ted Sarandos recently visited the White House. "I have a lot of respect for him. He's a great person. He's done one of the greatest jobs in the history of movies" he said, adding that he plans to be directly involved with the regulatory review.
Reports have often noted that the Ellison family has been friendly with the President, though that didn’t stop Trump from taking a swing at Paramount on social media soon after. He posted that the Ellison owned company is "no better than the old ownership" while criticizing Paramount over a 60 Minutes interview featuring Rep. Marjorie Taylor Greene.
With two massive players trying to take control of one of Hollywood’s most historic studios, shareholders now have a huge choice to make. Paramount Skydance says they’re offering more money, more certainty, and a faster outcome.
Netflix is betting on its strategic alignment with Warner Bros. Pictures and HBO.
Source: Variety