Paramount Skydance escalated its pursuit of Warner Bros. Discovery (WBD) lasr week, with a $108.4 billion hostile takeover bid—offering $30 per share in all-cash for the entire company—directly to shareholders, days after WBD agreed to sell its studio, HBO, and HBO Max to Netflix in an $82.7 billion deal.
Paramount insists the Netflix transaction is "dead on arrival" due to severe antitrust obstacles and argues its offer is superior in value, certainty, and regulatory viability.
Paramount CEO David Ellison accused WBD's board of a "tainted" process favoring Netflix, ignoring six prior Paramount proposals, and overvaluing WBD's cable networks (to spin off as Discovery Global). The all-cash bid provides shareholders ~$18 billion more immediate value than Netflix's cash-and-stock offer ($27.75 per share for partial assets), with Paramount projecting a faster close (12 months vs. Netflix's 12-18).
WBD's board is reviewing the hostile tender offer and must recommend within days, while sticking with Netflix for now. Switching would trigger a $2.8 billion breakup fee to Netflix (or $5.8 billion reverse if Netflix's deal fails).
The bidding war, sparked by Paramount's initial September approaches, has boosted WBD shares ~30% since rumors began. Netflix executives remain confident, expecting Paramount's counter, and emphasize synergies without major job cuts. Hollywood watches anxiously as the outcome could reshape streaming, theatrical releases, and content creation.
As of today, the battle continues, with Paramount urging shareholders to tender shares by January 8, 2026 (unless extended), potentially forcing a prolonged proxy fight or higher bids.