Hostile offer pitched as superior alternative
Paramount Skydance Corp. has doubled down on its hostile takeover bid for Warner Bros. Discovery Inc., reaffirming its offer of $30 per share in cash and insisting it provides greater certainty and value than a rival proposal from Netflix.
In a statement released Thursday, Paramount said its proposal represents the best outcome for Warner Bros. shareholders after addressing concerns raised by the company’s board. The group highlighted an irrevocable personal guarantee from billionaire Larry Ellison, backing $40.4 billion in equity financing, as a key improvement meant to eliminate doubts around funding.
Cable networks at the center of the dispute
A major fault line in the takeover battle is the future value of Warner Bros.’ cable television assets, including channels such as CNN and TNT. These networks have been under sustained pressure as audiences and advertisers migrate toward streaming platforms.
Netflix’s competing offer targets only Warner Bros.’ studios and streaming operations. Under that plan, shareholders would receive a mix of cash and stock in a new entity holding the legacy cable channels. Paramount argues that this structure exposes investors to declining assets with limited upside.
Versant spinoff cited as warning sign
Paramount pointed to the recent market debut of Versant Media Group, the cable assets spun out of Comcast, as evidence of the risks tied to traditional television businesses. Shares of Versant have fallen sharply since listing, reinforcing Paramount’s view that standalone cable networks face a difficult future.
Based on that performance and the debt burden carried by similar spinoffs, Paramount said it assigns no value to the cable-focused shares Warner Bros. investors would receive under the Netflix proposal.
Board remains unconvinced
Warner Bros. has repeatedly rejected Paramount’s advances. The company’s board reiterated this week that it remains skeptical about Paramount’s ability to close such a large transaction and concerned about the leverage involved.
Warner Bros. leadership has also noted that Paramount has not raised its price, while describing Netflix’s offer as carrying fewer risks and uncertainties despite its lower headline valuation.
Battle for a Hollywood crown jewel
The contest has become a high-stakes fight for control of one of Hollywood’s most iconic studios, home to major film franchises and the HBO brand. Paramount argues that its all-cash proposal offers shareholders a clearer and faster path to completion.
Paramount executives maintain that declines in Netflix’s share price have reduced the effective value of the streaming company’s bid, strengthening the case for their own offer as the more attractive option.