Paramount Makes $30 Billion Bid to Acquire Warner Bros Discovery, Aiming to Beat Netflix
Paramount Skydance has made a direct offer to Warner Bros Discovery shareholders of $30 per share to acquire the entire company, valuing Warner Bros Discovery at $108.4 billion. This bid aims to surpass Netflix's existing offer, which valued the studio and streaming networks at approximately $83 billion including debt.
Paramount's plan proposes more cash upfront and could face potentially easier regulatory approval. Under the offer, CBS and CNN would come under the same parent company, while Warner Bros Discovery would spin off CNN and other assets into an independent company. However, the deal would still face scrutiny from U.S. and European competition regulators, with analysts expressing concerns over the impact on streaming dominance, as well as effects on advertisers and local TV distributors.
Warner Bros Discovery is set to review the Paramount offer and respond within 10 business days, with no change to Netflix's recommendation at this time. Netflix executives have expressed confidence in their plan and dismissed Paramount's bid as expected. Their bid values the company at about $83 billion and does not include major cuts.
The Paramount bid involves notable financial partners including Jared Kushner and backing from the Ellison family. The involvement of Kushner, with ties to former President Trump who had previously suggested potential competition concerns regarding Netflix's purchase, is cited as possibly helpful in gaining approval.
Following the announcement, Warner Bros Discovery shares rose more than 4%, Paramount shares jumped about 9%, while Netflix shares fell more than 3%. Analysts have long viewed a combination of Paramount and Warner Bros Discovery as a logical step to better compete with giants like Netflix and Disney.
