Paramount Skydance Makes Hostile Bid to Acquire Warner Bros Discovery Amid Regulatory Scrutiny
Paramount Skydance, backed by the Ellison family, has launched a hostile all-cash bid to acquire Warner Bros Discovery, valuing the company at approximately $108.4 billion with a $30 per share offer. This move comes after Warner Bros had earlier rejected Paramount's proposals and announced a deal to sell its studio and streaming divisions to Netflix.
Netflix's proposed acquisition valued Warner Bros' studio and streaming networks, including HBO Max, at about $82.7 billion including debt, with a $23.25 per share offer plus an equity stake valued at about $27.75 per share. Netflix's plan would result in spinning off the remaining parts of Warner Bros Discovery as an independent entity. In contrast, Paramount seeks control of the entire company, including pay-TV networks such as CBS, CNN, and its sports offerings.
Both Paramount's and Netflix's bids face regulatory scrutiny by US and European authorities due to competition concerns. Analysts note that the outcome depends on how regulators define the market and whether platforms like YouTube are considered competitors. The deals' potential impact on actors, screenwriters, local cinemas, and advertisers remains under review.
The Ellison family's connections to former US President Donald Trump have been highlighted, with Jared Kushner identified as a financial partner of Paramount. Trump's position on the deal remains uncertain, though he has previously praised the Ellisons.
The consumer impact of the acquisition is unclear, with possible changes in pricing. According to Raymond James, over 70% of HBO Max customers in the US also hold Netflix subscriptions, indicating overlapping consumer bases.
