Paramount Skydance is going to WBD shareholders with a $30 a share all cash hostile offer after Netflix won the studio and HBO Max, arguing its smaller size could mean faster approval and a better deal overall for investors now
Paramount Skydance, led by CEO David Ellison, said Monday it is launching a hostile bid to buy Warner Bros. Discovery, taking its offer directly to shareholders after the company’s board rejected it last week.
The company is offering $30 per share in cash. The bid is backed by equity financing from the Ellison family and private equity firm RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi and Apollo Global Management.
Ellison said the company is moving ahead to “finish what we started,” arguing that Paramount’s earlier approach helped put Warner Bros. Discovery in play.
The hostile move comes days after Netflix agreed to acquire Warner Bros. Discovery’s studio and streaming assets, including the Warner Bros. film studio and the HBO Max streaming service, for $72 billion. Netflix’s deal does not include Warner Bros. Discovery’s cable networks, such as CNN and TNT Sports.
Paramount had pushed to buy the entire company, saying shareholders would be better served by keeping Warner Bros. Discovery together rather than splitting its businesses.
Paramount executives also plan to argue that their proposal would face a shorter regulatory review because of Paramount’s smaller size and its relationship with the Trump administration, according to people familiar with the matter.
Netflix’s proposed acquisition has already raised antitrust concerns, especially over combining two major streaming platforms. The Trump administration has signaled skepticism toward the deal, and President Donald Trump said Sunday that market share issues could create problems.
Netflix has agreed to pay Warner Bros. Discovery a $5.8 billion breakup fee if the deal is blocked by regulators. Warner Bros. Discovery would owe Netflix a $2.8 billion fee if it abandons the agreement to pursue another merger.