Paramount Skydance Launches Rival Bid for Warner Bros. Discovery
39 minutes ago
Natalie Sherman, Business Reporter
Warner Bros. Discovery
Paramount Skydance has submitted a fresh offer to acquire Warner Bros. Discovery, aiming to outpace a competing bid from Netflix for the company’s studio and streaming networks.
Paramount, backed by the Ellison family fortune, announced a direct shareholder proposal at $30 per share to purchase the entire company, including its traditional television networks.
The bid pitched itself as a “superior alternative” to Netflix’s proposal, offering more cash upfront to shareholders and a higher likelihood of regulatory approval.
Former President Donald Trump has indicated that there could be obstacles with Netflix’s purchase, citing competition concerns given the immense scale of the involved firms.
Speaking to CNBC, Paramount CEO David Ellison characterized Netflix’s proposed takeover as “anti-competitive,” arguing it would concentrate too much influence in the hands of one player over actors and other industry participants.
“It’s a terrible deal for Hollywood,” Ellison said. He noted that he had had “great conversations” with Trump about the deal and believed the president cares about competitive balance.
Netflix’s bid values Warner Bros.’ studio and streaming networks, including HBO, at roughly $83 billion, debt included, whereas Paramount’s offer values the entire enterprise at about $108.4 billion.
Both Netflix and Warner Bros. boards indicated support for Netflix’s plan, which would proceed following a planned spin-off of other Warner Bros. assets into an independent company.
However, Ellison warned that an independent spin-off of Warner Bros. networks could jeopardize their value and be detrimental to shareholders, saying, “I think [its shares are] going to be worth a lot less than people are claiming.”
Would you side with a consolidated, bigger-volume deal or a strategy that preserves separate, spun-off components to maximize value? Share your thoughts in the comments.
