Paramount has initiated a hostile all-cash tender offer to acquire Warner Bros. Discovery (WBD) for $30 per share, valuing the company at approximately $108.4 billion and directly challenging the previously accepted takeover proposal from Netflix.
The new offer represents a 139% premium over WBD’s September share price of $12.54. In its announcement, Paramount dismissed Netflix’s earlier bid as “inferior and uncertain.”
Paramount CEO David Ellison emphasized that WBD investors should be given the chance to weigh both options, stating:
“WBD shareholders deserve an opportunity to consider our superior all-cash offer.”
Last week, Warner Bros. Discovery agreed to Netflix’s $27.25-per-share deal, valued at about $82.7 billion, covering its studio operations and HBO Max streaming platform. Paramount’s counteroffer, however, targets the entirety of WBD’s business, including its extensive cable portfolio — CNN, TBS, Discovery Channel, and more.
In a detailed statement, Paramount said its proposal offers a clearer and more valuable path for shareholders:
“Our offer provides a superior alternative to the Netflix transaction, which offers inferior and uncertain value and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process.”
Ellison added that the acquisition would strengthen the entertainment industry:
“We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry.”
Market reactions were swift following the announcement: WBD shares climbed over 6%, Paramount rose more than 3%, while Netflix slipped over 3% in early trading.
