All-cash offer aims to upend Netflix’s newly announced deal
Paramount Skydance is making a direct appeal to Warner Bros. Discovery shareholders after losing out to Netflix in a months-long bidding contest. The company unveiled a hostile all-cash offer of $30 per share, matching the bid WBD rejected last week and valuing the enterprise at $108.4 billion.
The move escalates an already high-stakes battle for one of Hollywood’s largest legacy portfolios. Paramount’s offer is backed by substantial financing, including $54 billion in debt commitments from Bank of America, Citi and Apollo Global Management, as well as equity from the Ellison family and RedBird Capital.
Middle Eastern investors and Kushner firm among financiers
Additional non-voting equity is being provided by Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company PJSC, Qatar Investment Authority and Jared Kushner’s Affinity Partners. Paramount said all outside partners have agreed to forgo governance rights such as board seats, keeping the deal outside the jurisdiction of the Committee on Foreign Investment in the U.S.
Shares of Paramount climbed 7% following the announcement, while WBD stock rose roughly 5%. Netflix shares fell more than 4% as the competing bid was made public.
Paramount challenges Netflix’s signed agreement
Netflix announced Friday that it had reached a deal to acquire WBD’s studio and streaming assets for $27.75 per share, valuing that agreement at $72 billion. Paramount, by contrast, is attempting to buy all of Warner Bros. Discovery, including its film and TV studios and its suite of cable networks such as CNN and TNT Sports.
“We’re really here to finish what we started,” Paramount Skydance CEO David Ellison told CNBC. “Cash is still king. We’re offering shareholders $17.6 billion more in cash than Netflix’s deal.”
Ellison also emphasized that the company is willing to increase its offer. He said he texted WBD CEO David Zaslav noting that $30 per share is not Paramount’s best and final proposal.
Regulatory hurdles loom as competing visions emerge
Ellison argues Paramount’s takeover would face fewer regulatory complications due to its size and a cooperative relationship with the Trump administration. He said Trump supports competition and would see a Paramount-WBD combination as a strong challenger to Netflix and Amazon.
By contrast, Ellison questioned whether regulators would approve Netflix acquiring the assets of a top competitor. “Allowing the No. 1 streaming service to combine with the No. 3 is anti-competitive,” he said. The Trump administration has already expressed “heavy skepticism,” according to reports.
If Netflix’s deal fails to secure approval, it has agreed to pay WBD $5.8 billion. WBD would owe $2.8 billion if it backs out to pursue another merger.