**Paramount Makes $108.4 Billion Hostile Bid for Warner Bros**
Paramount has initiated a $108.4 billion hostile takeover bid for Warner Bros Discovery (WBD), directly challenging Netflix’s recent $72 billion acquisition agreement with the entertainment giant. On Monday, Paramount announced its intention to approach WBD shareholders with a cash offer for the entire company, including its Global Networks segment, urging them to reject the Netflix deal.
Last Friday, Netflix secured a deal to acquire WBD, the powerhouse behind iconic franchises such as “Harry Potter” and HBO Max. This agreement would consolidate Warner Bros Discovery’s extensive library of films and television series, including “Game of Thrones,” under the same umbrella as Netflix’s popular shows like “Stranger Things” and “Squid Game.” The Netflix deal, valued at $27.75 per Warner share, amounts to a total enterprise value of $82.7 billion, factoring in debt.
In contrast, Paramount’s proposal offers $30 per share in cash, representing an additional $18 billion more than Netflix’s offer. In a statement, Paramount emphasized that its bid is a “strategically and financially compelling offer” for WBD shareholders, presenting a “superior alternative” to the Netflix transaction.
David Ellison, Chairman and CEO of Paramount, stated, “WBD shareholders deserve the chance to consider our superior all-cash offer for their shares in the entire company. Our public offer, which mirrors the terms we provided to the Warner Bros Discovery Board of Directors in private, delivers greater value and a more certain and expedited path to completion.”
Ellison criticized the WBD Board for pursuing what he described as an inferior proposal, which involves a mix of cash and stock, an uncertain future for the Global Networks linear cable business, and a challenging regulatory approval process. He asserted that Paramount’s direct approach to shareholders aims to empower them to act in their best interests and maximize the value of their shares.
Under the terms of the Netflix deal, WBD plans to proceed with its previously announced strategy to separate its studio and streaming operations from its global networks division, which will become a standalone entity named Discovery Global. The Netflix acquisition will not be finalized until this split is complete.
**FAQ**
**What is Paramount’s offer for Warner Bros Discovery?**
Paramount has made a $108.4 billion hostile bid for Warner Bros Discovery, offering $30 in cash per share, which is significantly higher than Netflix’s $27.75 per share offer.
