Direct offer to shareholders after Netflix deal
Paramount Skydance has escalated its pursuit of Warner Bros. Discovery by making a hostile proposal directly to WBD shareholders. The all-cash bid of 30 dollars per share values the company at about 108.4 billion dollars. Executives argue that their approach offers significantly more cash than Warner’s pending agreement with Netflix.
The offer is supported by equity financing from the Ellison family and RedBird Capital, alongside 54 billion dollars in debt commitments from major lenders including Bank of America and Citi.
Middle East funding without governance rights
Additional backing is coming from non-U.S. investors such as Saudi Arabia’s Public Investment Fund and partners in Abu Dhabi and Qatar. These parties have agreed to provide capital without board influence, a move designed to avoid extended foreign investment reviews in Washington.
Shares of Paramount and WBD gained after the announcement, while Netflix traded lower.
Competition with Netflix heats up
Paramount Skydance chief David Ellison said the company remains committed to keeping Warner Bros. Discovery intact, including its television networks. He criticized Netflix’s planned acquisition of Warner’s studio and streaming units as potentially anticompetitive, arguing that combining the market’s largest streaming platform with another major player could limit consumer choice.
He also suggested that the regulatory timeline for Paramount’s deal would be shorter due to its smaller scale and strong ties to the current White House.
Uncertain path forward for Warner Bros. Discovery
The rival Netflix agreement, valued at 27.75 dollars per share in a mix of stock and cash, includes a 5.8 billion dollar termination fee if approvals fail. WBD would owe Netflix 2.8 billion dollars if it backs out to pursue another buyer.
Netflix leaders defended their offer at an industry conference, saying a merger would expand creative opportunities and protect jobs, countering suggestions that cost savings would result in layoffs.
