WB Takeover Complicates After Hostile Paramount Counteroffer

Paramount Skydance launched a hostile bid to acquire Warner Bros. Discovery. They value WBD at $108.4 billion, with the offer coming just days after Netflix had agreed to a takeover.

Paramount stated its bid, at $30 per share in cash, is for the entirety of WBD, including its Global Networks Segment, which houses its traditional television portfolio. Netflix’s bid, valued at $82.7 billion, was just for Warner’s studio and streaming assets. The streaming giant beat off competition from Paramount and Comcast last week, winning a protracted bidding auction.

However, Paramount’s latest offer has been made directly to shareholders. In a statement, Paramount described its offer as a superior alternative to the Netflix transaction, with the offering for the entirety of WBD providing shareholders $18 billion more in cash than the Netflix offer. As well as inferior and uncertain value, Paramount said Netflix’s bid exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process.

US President Donald Trump hinted at a protracted regulatory process, stating that the Netflix-WBD tie-up could be a problem, given Netflix’s rising market share should the deal go through. Dave Ellison, chairman and CEO of Paramount, said WBD shareholders deserve an opportunity to consider an all-cash offer for their shares in the entire company. He added that his company offers a more certain and quicker path to completion.