"Paramount Takes Aim at Warner Bros Discovery with Hostile Bid Worth $74.4bn"
In a surprise move, Paramount has launched a hostile bid for Warner Bros Discovery, challenging the $72 billion takeover deal struck by Netflix just days ago. The offer, valued at approximately $30 per share in cash, is worth about $18 billion more than the competing bid from Netflix, which was rejected by Warner Bros Discovery shareholders.
Paramount claims its proposal will create a stronger Hollywood, benefiting consumers and the movie theater industry through enhanced competition, higher content spend, and increased theatrical release output. The company has submitted six proposals to Warner Bros Discovery over 12 weeks, with CEO David Ellison stating that their offer is in the best interests of the creative community.
However, Netflix has warned that Paramount's bid "exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash." The company also criticized Paramount's proposal for its lack of transparency on cable assets.
The proposed deal is set to expire on January 8, 2026, unless it is extended. Shares of Warner Bros and Paramount have jumped between 5 percent and 6 percent at the opening bell on Monday, while shares of Netflix edged lower.
US President Donald Trump has also weighed in on the deal, stating that it "could be a problem" due to the size of the combined market share. His involvement in the decision-making process has raised eyebrows, particularly given Paramount's ties to his family. The Republican president has expressed concerns about media control and has vowed to be involved in approving or rejecting the deal.
With the deal set to close within 12-18 months, after Warner completes the separation of its cable operations, investors are eagerly awaiting a resolution that will shape the future of the entertainment industry.
In a surprise move, Paramount has launched a hostile bid for Warner Bros Discovery, challenging the $72 billion takeover deal struck by Netflix just days ago. The offer, valued at approximately $30 per share in cash, is worth about $18 billion more than the competing bid from Netflix, which was rejected by Warner Bros Discovery shareholders.
Paramount claims its proposal will create a stronger Hollywood, benefiting consumers and the movie theater industry through enhanced competition, higher content spend, and increased theatrical release output. The company has submitted six proposals to Warner Bros Discovery over 12 weeks, with CEO David Ellison stating that their offer is in the best interests of the creative community.
However, Netflix has warned that Paramount's bid "exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash." The company also criticized Paramount's proposal for its lack of transparency on cable assets.
The proposed deal is set to expire on January 8, 2026, unless it is extended. Shares of Warner Bros and Paramount have jumped between 5 percent and 6 percent at the opening bell on Monday, while shares of Netflix edged lower.
US President Donald Trump has also weighed in on the deal, stating that it "could be a problem" due to the size of the combined market share. His involvement in the decision-making process has raised eyebrows, particularly given Paramount's ties to his family. The Republican president has expressed concerns about media control and has vowed to be involved in approving or rejecting the deal.
With the deal set to close within 12-18 months, after Warner completes the separation of its cable operations, investors are eagerly awaiting a resolution that will shape the future of the entertainment industry.