Paramount Makes $108.4-B Hostile Bid for Warner Bros. Discovery

Paramount Skydance on Monday launched a hostile bid worth $108.4 billion for Warner Bros. Discovery (WBD) in a last-ditch effort to outbid Netflix and create a media powerhouse that would challenge the dominance of the streaming giant, Harshita Mary Varghese, Aditya Soni, and Dawn Chmielewski reported for Reuters.

Paramount will appeal to shareholders, regulators, and politicians to try to stymie Netflix. (Photo: Paramount Studios) 

Netflix had emerged victorious from a weeks-long bidding war with Paramount and Comcast, securing a $72 billion equity deal for Warner Bros. Discovery’s TV and film studios and streaming assets.

But Paramount’s latest attempt means the jockeying for Warner Bros. and its prized HBO and DC Comics assets will not be resolved quickly.

Netflix’s offer includes a $5.8 billion break-up fee and is likely to face strong antitrust scrutiny; U.S. President Donald Trump raised questions about the offer over the weekend.

The bid has already drawn sharp criticism from bipartisan lawmakers and Hollywood unions, who fear job cuts as well as higher prices for consumers, Jill Goldsmith also reported for Deadline.

Paramount’s bid could face scrutiny of its own. A Paramount–Warner Bros. combination would significantly expand its dominant position in the studio business, raising concerns about potential job losses as the industry rapidly consolidates.

Reuters previously reported, citing sources familiar with the matter, that Paramount had raised its offer to $30 per share on Thursday for the entire company, but the Warner Bros. board had concerns about financing.

“The Warner Bros. Discovery acquisition is far from over. Netflix is in the driver’s seat, but there will be twists and turns before the finish line.

Paramount will appeal to shareholders, regulators, and politicians to try to stymie Netflix. The battle could become prolonged,” said Emarketer senior analyst Ross Benes.