In a massive escalation of the biggest Hollywood takeover battle in years, Paramount has launched a $108.4 billion hostile WBD takeover bid for Warner Bros. Discovery (WBD). The all-cash offer comes just three days after WBD accepted a $82.7 billion cash-and-stock bid from Netflix for its studio and streaming assets.
Paramount’s all-cash tender offer of $30 per share is $2.25 higher than Netflix’s proposal and covers the entire WBD empire, including its cable networks (CNN, TBS, TNT). Paramount CEO David Ellison stated the offer provides “$18 billion more in cash” and a “more certain and quicker path to completion,” directly appealing to shareholders over the WBD board’s decision.
The Battle for Hollywood Assets
The key difference in the bids is the scope. Netflix’s offer was structured around WBD first spinning off its Global Networks division. Paramount’s bid, however, is for the whole company, which it argues avoids the regulatory and valuation uncertainties of the spin-off.
The hostile bid, backed by the Ellison family and investment partners, throws the accepted Netflix deal into immediate jeopardy. Netflix had previously secured a $5.8 billion break-up fee should its deal fail. The ensuing corporate showdown will determine the future control of iconic franchises like HBO, DC Comics, and Harry Potter, setting the stage for a dramatic year in media consolidation.
