Paramount Skydance has submitted a new bid to acquire Warner Bros Discovery, making a direct offer to shareholders to buy the entire company for $30 per share as it seeks to challenge Netflix’s agreed plan to purchase Warner Bros’ studio and streaming businesses.
Terms of Paramount’s Offer
Paramount, backed by the Ellison family, said its proposal would value the whole of Warner Bros Discovery at $108.4bn. The offer includes the company’s traditional television networks alongside its studio and streaming operations. Paramount said its proposal represents a “superior alternative” to Netflix’s deal, citing higher upfront cash payments to shareholders and what it described as a stronger likelihood of regulatory approval.
The company said it had taken the step of making a direct offer to shareholders after previously submitting multiple bids over recent months.
Background to the Bidding Process
Paramount’s earlier approaches contributed to Warner Bros formally opening a bidding process. Warner Bros Discovery owns assets including HBO, CNN, and franchises ranging from Looney Tunes to Harry Potter.
Despite Paramount’s interest, Warner Bros announced on Friday that it had selected Netflix as the winning bidder for its studio and streaming assets. That deal values those businesses at about $83bn, including debt. Warner Bros said the transaction would proceed following a planned spin-off of other parts of its business, with CNN among the assets to be separated into an independent company.
Paramount is a smaller player than Netflix but controls brands such as CBS News, Nickelodeon, and the Mission Impossible film franchise.
Political and Regulatory Factors
President Donald Trump has said there “could be a problem” with Netflix’s acquisition of Warner Bros, referring to potential competition concerns tied to the size of the combined company. He also said over the weekend that he expected to be involved in the regulatory approval process.
Paramount has been viewed by some analysts as a strong suitor in part because of the relationship between Trump and the Ellison family, including tech billionaire and Republican megadonor Larry Ellison. Paramount’s financing group also includes Trump’s son-in-law Jared Kushner, according to filings made with the Securities and Exchange Commission.
Market Reaction and Analyst Views
Wall Street analysts have long argued that a combination between Paramount and Warner Bros could be strategically viable by creating a company with enough scale to compete with rivals such as Netflix and Disney.
However, either transaction is expected to face scrutiny from competition regulators in the United States and Europe. Analysts said a Netflix-Warner Bros deal would likely raise concerns about dominance in streaming, while a Paramount-Warner Bros merger would trigger review of its potential impact on advertisers and local television distributors, given the combined company’s reach across sports and children’s programming.
Responses From Netflix and Warner Bros
Netflix executives said on Monday that they remained confident in their acquisition plans and described Paramount’s renewed bid as “entirely expected.”
Warner Bros said it would review Paramount’s offer but was not changing its recommendation in favor of Netflix at this stage. The company said it would respond within 10 business days.
Trump’s Public Comments and Media Tensions
While acknowledging potential antitrust concerns tied to Netflix’s bid on Sunday, Trump also offered praise for Netflix’s leadership. On Monday, he criticised Paramount on social media over a 60 Minutes interview the network aired with former Trump ally Marjorie Taylor Greene, a Republican member of Congress.
In an interview with CNBC, Paramount chief executive David Ellison said he had held “great conversations” with Trump about the proposed acquisition but said he did not wish to speak on the president’s behalf.
Featured image credits: Digital-News
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