Paramount Skydance announced an all‑cash tender offer to acquire every outstanding share of Warner Bros. Discovery Inc. (WBD) at $30.00 per share, valuing the company at roughly $108.4 billion in enterprise value. The bid is backed by $54 billion in debt commitments from Bank of America, Citi and Apollo, and equity from the Ellison family and RedBird Capital. The offer is a direct challenge to Netflix’s earlier agreement to purchase WBD’s film and television studios and HBO Max streaming business for $82.7 billion in enterprise value, a deal that closed on December 5, 2025.
The Paramount Skydance proposal seeks the entire WBD entity, including its global linear networks such as CNN, Discovery and TNT. By offering a higher all‑cash price—$30 per share versus Netflix’s $27.75 per share—Paramount claims it delivers $18 billion more in cash to shareholders and a faster, more certain closing process. The bid also positions Paramount to acquire a diversified media portfolio that could accelerate its streaming ambitions and provide scale for content production.
WBD’s Q3 2025 results showed a 6% year‑over‑year decline in revenue to $9.0 billion and a net loss of $148 million, compared with a $9.6 billion revenue and $100 million net income in Q3 2024. Adjusted EBITDA rose 2% to $2.5 billion, driven by growth in the streaming and studios segments, but was offset by a decline in the global linear networks segment. The company’s cash position stood at $4.3 billion against $34.5 billion in gross debt, giving a net leverage ratio of 3.3x. The earnings miss—$0.06 per share versus an estimated loss of $0.04—reflected weaker-than‑expected studio revenue and higher operating costs.
Netflix’s Q3 2025 financials posted revenue of $11.51 billion, up 17.2% year‑over‑year, and net income of $2.55 billion ($5.87 per share), missing analyst expectations of $6.97 per share. The miss was largely due to a Brazilian tax dispute that eroded operating margins, despite strong subscriber growth. The company’s focus on profitability and cost discipline is evident in its guidance, which signals a shift from subscriber acquisition to margin expansion.
Market reaction to the Paramount Skydance bid was positive for WBD, driven by the higher all‑cash offer and the prospect of a quicker transaction. Investors viewed the bid as a more attractive financial proposition than Netflix’s deal, which excluded WBD’s linear networks. The bid also intensified regulatory scrutiny, as the combined entity would control a larger share of the U.S. streaming market, raising antitrust concerns.
WBD CEO David Zaslav emphasized the importance of Max and the need for continued investment in the streaming platform. He noted that the company is “focused on delivering a compelling content mix while managing costs” and that the current financial performance reflects a “transition period” as the studio and linear networks segments adjust to new market dynamics. The Paramount Skydance offer, according to management, presents a “significant premium” that could unlock shareholder value while preserving WBD’s strategic focus on content and distribution.
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