Paramount Skydance makes $108 billion hostile bid for Warner Bros

Paramount Skydance on Monday launched a hostile bid worth $108.4 billion for Warner Bros Discovery, throwing a wrench into the deal with Netflix in a last-ditch effort to create a media powerhouse that would challenge the dominance of the streaming giant.

 

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

 

The offer, which is worth $82.7 billion including debt and comes with a $5.8 billion break-up fee from Netflix, is likely to face strong antitrust scrutiny.

 

Paramount submitted multiple offers starting in September to forge an entertainment powerhouse capable of challenging Netflix and tech giants such as Apple that have expanded into media but faced rejections. It has offered to buy the whole company at $30 per share, compared with Netflix’s nearly $28 per share offer for its assets.

 

Paramount remains one of Hollywood’s major studios, but its box office record has been uneven, with occasional franchise wins offset by periods in which its slate has trailed Disney, Universal and Warner Bros in US market share. It had sent a letter to Warner Bros, questioning the sale process and alleging the company has abandoned a fair bidding process and predetermined Netflix as the winner.

 

That followed reports that Warner Bros’ 

 

management called the Netflix deal a “slam dunk” while speaking negatively about Paramount's offer. Analysts and industry experts see Paramount as the best candidate for acquiring Warner Bros Discovery, given Ellison’s deep pockets - backed by his father, Oracle co-founder and the world’s second-richest person Larry Ellison and the close ties with the Trump administration.

 

Netflix’s bid has already drawn sharp criticism from bipartisan lawmakers and Hollywood unions on concerns that it could lead to job cuts as well as higher prices for consumers.

 

The combined company will have substantial overlap and its combined streaming revenue would decline unless Netflix doubles its prices or runs separate platforms, neither of which the brokerage expects, Morningstar analysts have said. Looking to allay antitrust fears, Sarandos had said the deal would drive value for consumers, shareholders and talent, saying Netflix is “highly confident” in the regulatory process.

 

Trump: Netflix-WBD deal may pose antitrust problem

 

US President Donald Trump raised potential antitrust concerns around Netflix Inc’s planned $72 billion acquisition of Warner Bros Discovery Inc, noting that the market share of the combined entity may pose problems. 

 

Trump’s comments, made as he arrived at the Kennedy Centre for an event on Sunday, may spur concerns regulators will oppose the coupling of the world’s dominant streaming service with a Hollywood icon. The company faces a lengthy Justice Department review of a deal that would reshape the entertainment industry.

 

“Well, that’s got to go through a process, and we’ll see what happens,” Trump said when asked about the deal, confirming he met Netflix co-Chief Executive Officer Ted Sarandos recently. “But it is a big market share. It could be a problem.”  Bets on prediction marketplace Polymarket showed a 23 per cent chance of Netflix closing the acquisition by the end of 2026, down from around 60 per cent just before Trump’s comments. Bloomberg