Paramount Launches $108 Billion USD Hostile Bid for Warner Bros. Discovery
Paramount’s deal is underpinned by a $24 billion USD funding that sees contributions from audi Arabia, Qatar and Abu Dhabi as well as Jared Kushner’s Affinity Partners.
Summary
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Paramount Skydance launched a hostile, all-cash takeover bid for Warner Bros. Discovery (WBD) valued at $108.4 billion USD (enterprise value), offering shareholders $30 USD per share
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Paramount aggressively positioned its bid as superior to Netflix’s lower-valued, stock-and-cash proposal, with CEO David Ellison stating: “Our proposal is superior to Netflix in every dimension”
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The deal is backed by $24 billion USD from Gulf wealth funds and sets a quicker, 12-month closing timeline, with WBD required to respond to the offer within 10 business days
A massive corporate battle is underway as Paramount Skydance, led by Larry Ellison, has commenced an aggressive, all-cash tender offer aimed at acquiring Warner Bros. Discovery (WBD). The high-stakes bid, publicly valued at $108 billion USD, is reportedly timed to challenge WBD’s ongoing discussions with rivals, specifically Netflix. Just last week, Netflix launched a $72 billion USD acquisition for WBD.
Paramount’s proposal, which echoes the terms of a December 4 offer to the WBD board, seeks to purchase all outstanding shares at $30 USD per share, challenging Netflix’s bid. Crucially, the hostile takeover is comprehensive, targeting the entirety of WBD’s sprawling media empire. This includes not only the film studios and streaming assets but also the valuable cable TV portfolio, encompassing major networks like CNN, TBS, and TNT.
Paramount Skydance CEO David Ellison directly challenged the competitor, stating, “Our proposal is superior to Netflix in every dimension.” The company further detailed the disparity, noting the Netflix proposal’s “$27.75 USD per share” offer (a volatile mix of cash and stock) equates to an enterprise value of only $82.7 billion (excluding the TV business). He added, “Paramount’s strategically and financially compelling offer to WBD shareholders provides a superior alternative to the Netflix transaction, which offers inferior and uncertain value and 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 deal is underpinned by formidable global financial backing. Paramount has secured a remarkable $24 billion USD in funding from a coalition of powerful Gulf wealth funds, specifically citing contributions from Saudi Arabia, Qatar, and Abu Dhabi. Additionally, the bid is supported by Jared Kushner’s Affinity Partners. This move represents one of the largest media consolidation attempts in recent history, designed to reshape the streaming wars and content ownership landscape.
