Recently, it was announced that Netflix would be buying Warner Bros. Discovery (WBD) in a cash and stock options deal that would be majority financed by bank loans from Wells Fargo, HSBC, and BNP. Paramount is now trying to leverage a hostile takeover bid valued at $108 billion.
Paramount has been very vocal in their disapproval of the Netflix deal.
Prior to this hostile bid, Paramount lawyers sent a letter to WBD questioning their suspected bias toward Netflix based on news reports coming out of Germany.
Paramount Skydance has now upped its bid to include $24 billion from Saudi Arabia, Qatar, and Abu Dhabi wealth funds, as well as Jared Kushner’s Affinity Partners. This solidifies the rumors that the studio was going to use Saudi money to finance a deal.
According to Variety, Paramount is offering an all-cash deal to acquire all of the outstanding shares of WBD for $30 per share. This is the same offer given to the WBD board in the Dec. 4 bid. Netflix is offering $27.75 per share, in a mix of cash and stock ($23.25 cash and $4.50 in stock.)
It’s higher because Netflix only wants Warner Bros., HBO, and HBO Max. Paramount wants all Warner Bros. Discovery, including linear TV and other networks.
The current plan sees Discovery and the other networks turned into a new company called Discovery Global after they offload Warner Bros., HBO, and HBO Max to Netflix.
Paramount says this offer would equate to $108.4 billion and includes the “assumption of debt” that WBD has run up. It can also be concluded quicker than the Netflix deal, which requires Discover Global to be completed before the purchase. The 12-month time frame is the same for both offers, but Netflix’s offer could take up to 12- 18 months.
Paramount promises to release films theatrically
Hollywood has been in panic mode since Netflix was announced as the winner. There is a concern that Netflix will prioritize streaming over theatrical releases. Now Paramount Skydance head David Ellison has stated that their focus is to put out 30 films a year and to continue to support “one of America’s greatest exports.”
“We love the movie and entertainment business. We believe deeply in its future, and we want to help preserve and strengthen it. Movies are one of America’s greatest exports. We want to lean into that legacy, not diminish it.
“This transaction is about building more, not cutting back. More opportunity for the industry, more choice for consumers, more value for shareholders, and more support for creative talent.”
The new offer from Paramount / Skydance is set to expire at 5 PM EST on January 8, 2026.
WBD will need to inform shareholders of their decision to accept or reject the Paramount Skydance offer within 10 business days.
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