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Paramount is trying to outbid Netflix by offering $108.4B directly to Warner Bros’ shareholders to take over the company.
What’s happening: Paramount has skipped Warner Bros’ board and made a $30-per-share cash offer directly to the shareholders. The company said that the sale process unfairly favoured Netflix.
It claims it submitted six proposals in 12 weeks which were all rejected. Paramount says it’s doing this to restore a fair bidding process.
Paramount CEO David Ellison added, “We’re fighting for our shareholders, and we’re also fighting for the shareholders of Warner Bros Discovery.”
Background: Netflix swooped in last week with a $72 billion equity deal for Warner Bros Discovery’s film, TV and streaming assets.
The deal includes HBO and DC Comics, comes with a $5.8 billion breakup fee, and is expected to face antitrust scrutiny. Even US President Donald Trump has raised concerns about Netflix’s takeover attempt.
What can happen: the deal is now wide open. If Warner’s shareholders believe Paramount’s higher all-cash offer is better, the Netflix agreement could unravel but regulatory pushback and doubts over Paramount’s financing may complicate things.
Warner Bros’ board has already questioned Paramount’s ability to fund the bid, but if pressure builds from investors, the company may have to re-evaluate its “Netflix-first” stance.
