December 08, (THEWILL) — Paramount Skydance, on Monday, entered the bidding war by making a hostile all-cash offer of $30 per share for Warner Bros. Discovery (WBD), valuing the company at about $108.4 billion.
Paramount says its offer is a “superior alternative” to Netflix’s deal.
According to the company, its proposal gives WBD shareholders $18 billion more in cash than Netflix’s cash-and-stock offer, which Paramount claims is riskier due to regulatory concerns and a more complicated payment structure.
Unlike Netflix’s bid, which includes only the studio and streaming assets, Paramount’s offer covers all of WBD, including movie studios, streaming platforms, and the company’s many cable networks.
If Paramount wins, the combined company would control a large part of the entertainment world, from blockbuster films and streaming shows to major TV channels and sports rights.
Paramount CEO, David Ellison, said the deal would benefit Hollywood, creators, and audiences, promising more money for content, more movies released in theatres, and a stronger competitor to major streaming companies.
He also argued that a Netflix takeover would give too much power to one company, saying, “It’s a horrible deal for Hollywood.”
The announcement shook the entertainment world, with WBD’s stock rising over 6%, Paramount’s shares also increasing, and Netflix’s share price falling.
The battle between Paramount and Netflix is now fully underway, but with regulators in the U.S. and other countries closely watching both deals, the final outcome remains uncertain.
Evi Ben Ezaga writes on entertainment, culture, and trending stories.
