Paramount launches $108B hostile bid for Warner Bros Discovery

Paramount Skydance on Monday made a hostile 108.4-billion-dollar all-cash offer for the whole of the Warner Bros Discovery empire, in a tender that bypassed the WBD board and went directly to shareholders, just days after Netflix announced the acquisition of the film and television studios and streaming assets of the entertainment conglomerate. With the Paramount bid, WBD is now at the centre of a high-stakes contest between Netflix and Paramount, backed by Oracle founder Larry Ellison, days after what appeared to be a near-certain announcement from the streaming giant that it would acquire the prized studio and streaming operations of WBD.

Paramount’s proposal has 54 billion dollars in committed debt from major banks, along with equity from RedBird Capital and Ellison-aligned investors, reports said. Paramount argues its offer provides 18 billion dollars more in cash than Netflix’s. It claims that its bid will face less regulatory scrutiny. It noted that Netflix’s US market share, if it merges with WBD’s streaming assets, would exceed 50 per cent and draw antitrust concerns from the Department of Justice.

Amid falling cable revenues, WBD CEO David Zaslav has been looking to pare losses. Formal bids for WBD emerged in late November, with Netflix aggressively seeking WBD’s studios and streaming assets, including HBO Max, in a deal valued at 72 billion dollars in equity, at 27.75 dollars per share. Paramount seeks to acquire the entire company — Warner Bros studios, HBO Max, CNN, Discovery networks and cable channels. Besides Ellison, Paramount is backed by Middle Eastern financing, and has been positioning itself as the only “full-service” buyer. (Agencies)

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