Paramount Skydance Corporation announced a hostile all‑cash offer to acquire Warner Bros. Discovery (WBD) at $30 per share, valuing the company at roughly $108.4 billion, including debt. The bid covers the entire WBD portfolio—film and television studios, HBO, HBO Max, and linear cable networks such as CNN and Discovery—making it a full‑company takeover rather than a selective asset purchase.
The offer comes a few days after Netflix’s own announcement of a $72 billion deal to acquire WBD’s studio and streaming assets for $27.75 per share in a mix of cash and stock. Paramount’s $30 per share is $2.25 higher, and the all‑cash structure removes the uncertainty of a stock‑based payout, giving WBD shareholders a more immediate and certain return. While Netflix is focused on bolstering its streaming library, Paramount seeks the entire company, including its linear networks, positioning it to leverage both traditional advertising and subscription revenue streams.
Financially, WBD reported a Q3 2025 net loss of $148 million on revenues that fell 6% ex‑FX, underscoring the company’s need for a premium offer. Paramount Global, which merged with Skydance Media in August 2025, posted Q2 2025 revenue of $6.85 billion, up 0.5% year‑over‑year, and a net income of $61 million, indicating a modest but improving financial footing that supports a large all‑cash bid. The contrast in financial health explains why Paramount can afford a higher premium while Netflix relies on a mixed‑cash‑and‑stock approach.
Regulatory scrutiny is a key concern for both deals. Paramount’s bid includes news assets such as CNN, raising antitrust questions about media concentration, while Netflix’s acquisition of WBD’s streaming and studio assets could trigger similar concerns. The fact that Paramount’s leadership has ties to former President Trump has been cited as a potential advantage in navigating U.S. regulatory approval, though the outcome remains uncertain. Both transactions will require approvals from U.S. and international regulators, and the political dimension may influence the speed and outcome of those reviews.
Market reaction to the announcement was swift: WBD’s stock rose about 5%, Paramount’s about 7.3%, and Netflix’s fell roughly 4%. The positive moves for WBD and Paramount reflect the higher offer price and the certainty of an all‑cash deal, while Netflix’s decline signals investor concern over increased competition and potential dilution of its strategic gains. Cinema‑related stocks such as IMAX and Cinemark also gained, as the market interpreted Paramount’s bid as more likely to preserve theatrical releases than a streaming‑centric deal.
David Ellison, CEO of Paramount Skydance, said the company’s offer “provides shareholders with a more certain and immediate payout” and that “once shareholders have the opportunity to choose for themselves, they’ll choose Paramount.” Ted Sarandos, co‑CEO of Netflix, noted that the acquisition “will help both companies define the next century of storytelling.” Chris McCarthy, co‑CEO of Paramount Global, emphasized a shift toward “original hits” over volume, underscoring the strategic intent behind the bid. The competing offers signal a pivotal moment for the media industry, as the outcome will reshape content ownership, distribution models, and competitive dynamics for years to come.
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