Paramount Skydance launched a hostile bid of $108.4 billion for Warner Bros Discovery on Monday, disrupting Warner Bros’ previous agreement with Netflix. This move aims to create a major media entity to compete with top streaming services. The bidding war involved Netflix, Paramount, and Comcast vying for Warner Bros Discovery’s television, film studio, and streaming assets over several weeks.
While Netflix had initially secured a $72 billion equity deal for these businesses, Paramount’s all-cash offer, totaling $82.7 billion including debt and featuring a $5.8 billion break-up fee for Netflix, is anticipated to face extensive antitrust review. Paramount had made multiple proposals starting from September in a bid to challenge established entertainment companies and prominent tech firms. However, its offers were consistently turned down until now. Paramount’s current bid of $30 per share outstrips Netflix’s nearly $28 per share proposal.
Despite being a renowned Hollywood studio, Paramount has experienced fluctuations in its box office performance, alternating between successful franchise releases and periods of lagging behind competitors like Disney, Universal, and Warner Bros in the US market. Paramount raised concerns to Warner Bros about the sale process, accusing the company of favoring Netflix without conducting a fair bidding process.
Reports emerged that Warner Bros management favored the Netflix deal, dismissing Paramount’s offer. Industry analysts view Paramount as a strong contender for acquiring Warner Bros Discovery, highlighting the financial backing from Larry Ellison, Oracle’s co-founder and the world’s second-richest individual, and the close ties with the previous Trump administration.
US President Donald Trump expressed apprehensions about the Netflix-Warner Bros merger potentially impacting market competition, asserting his involvement in the deal. Bloomberg News disclosed Trump’s meeting with Netflix co-CEO Ted Sarandos in mid-November, where he suggested Warner Bros should sell to the highest bidder.