Paramount counters Netflix with all-cash offer to acquire all of Warner Bros. Discovery
CEO David Ellison calls the proposal “superior in every dimension,” promising a faster 12-month closing.
Just when it seemed the future of Warner Bros. Discovery (WBD) was settled, the entertainment landscape has shifted once again. Paramount Skydance CEO David Ellison and Paramount Skydance are not stepping aside quietly. Following the announcement of a binding agreement between Netflix and WBD last Friday, Paramount has launched a counteroffensive, taking their proposal directly to the shareholders in a move that could reshape the industry.
Paramount Skydance has announced the commencement of an all-cash tender offer to acquire all outstanding shares of WBD for $30 per share. This aggressive move mirrors the terms submitted to the board earlier this month, but bypasses the executives to appeal directly to the owners of the stock. Unlike the Netflix deal—which is valued at approximately $27.75 per share and involves a complex mix of cash and stock—Paramount’s proposal is a straightforward cash transaction.
A battle for the complete portfolio
The most significant difference for industry observers and consumers lies in the scope of the acquisition. The Netflix agreement, valued at an enterprise value of $82.7 billion, focuses on acquiring specific high-value assets: the film studio operations, HBO, and HBO Max. It essentially leaves behind the traditional television business.
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In contrast, Paramount’s offer represents a total enterprise value of $108.4 billion. This deal is for the entirety of Warner Bros. Discovery. This means Paramount would acquire not just the premium content engines, but also the linear television networks, including CNN, TBS, and TNT. David Ellison stated unequivocally on a call with analysts that their proposal is “superior to Netflix in every dimension.” To back this claim, Paramount highlights a faster timeline, projecting the deal would close within 12 months, compared to the 12 to 18 months estimated for the Netflix transaction.
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