Paramount Skydance Unveils $108.4 Billion Hostile Bid to Acquire Warner Bros Discovery

In a surprise move, media conglomerate Paramount Skydance has initiated a hostile takeover bid for Warner Bros Discovery, just days after the latter accepted an acquisition offer from Netflix. Paramount has proposed an all-cash offer of $30 per share, valuing Warner Bros Discovery at $108.4 billion. This surpasses Netflix's offer of $27.75 per share, which was specifically for the company's streaming and studio businesses. As a result, Netflix's stock price has fallen by 4.81%, while Warner Bros Discovery's stock has risen by 6%. David Ellison, Paramount's CEO, stated, "The shareholders of Warner Bros Discovery deserve the opportunity to consider our superior all-cash offer for the entire company, providing them with greater value and a more certain path to completion." Ellison further emphasized that the current proposal being pursued by the Warner Bros Discovery Board of Directors exposes shareholders to a mix of cash and stock, an uncertain future trading value, and a challenging regulatory approval process. He believes that by taking the offer directly to the shareholders, they can act in their best interests and maximize the value of their shares. This development comes after Netflix announced its intention to acquire Warner Bros for $82.7 billion, which includes the latter's video games division. The bidding war for Warner Bros began when Paramount Skydance made an unsolicited offer, with Comcast also participating before Netflix emerged as the initial victor. Recent reports suggest that Paramount Skydance's chief, David Ellison, had anticipated a successful outcome due to the company's strong relationship with the administration. Despite this, the deal will still face intense regulatory scrutiny, with concerns raised by politicians, industry figures, and even President Trump, who has reservations about the impact on Netflix's market share. Notably, the Paramount counter-offer has the backing of Jared Kushner, Trump's son-in-law.