Paramount skydance: Paramount Skydance announced Monday that it will launch a counter-bid to buy Warner Bros. Discovery (WBD) assets against Netflix for $30 per share in cash, amounting to around $108.4 billion, after a month-long bidding war. "Paramount's proposed transaction is for the entirety of WBD, including the Global Networks segment," the media conglomerate said in a statement.
According to Anadolu Agency, Paramount stated its offer is "strategically and financially compelling" to WBD shareholders, providing a "superior alternative" compared to Netflix's bid. Paramount criticized Netflix's offer as "inferior and uncertain," claiming it exposes WBD shareholders to a complex regulatory clearance process with uncertain outcomes and a volatile mix of equity and cash.
Paramount CEO David Ellison expressed confidence in the proposal, suggesting it would strengthen Hollywood. "It is in the best interests of the creative community, consumers, and the movie theater industry. We believe they will benefit from enhanced competition, higher content spend, and more theatrical releases," Ellison stated.
On Friday, Netflix revealed it had entered an agreement with WBD to acquire Warner Bros., including its film and television studios, HBO Max, and HBO. The cash-and-stock transaction was valued at $27.75 per WBD share, totaling a $72 billion deal with an enterprise value of approximately $82.7 billion.
The WBD board has been swayed by Paramount, believing it is in the shareholders' best interest to keep the company intact. Netflix's proposed acquisition has raised antitrust concerns, particularly due to the potential combination of two major streaming services. The Trump administration expressed skepticism, with President Donald Trump suggesting the combined market share "could be a problem."
President Trump commented that his stance would depend on the market share controlled by Netflix and Paramount. "I want to do what's right," Trump stated during a roundtable meeting. "I know the companies very well, but I have to see what percentage of the market they have."
Critics argue the deal might disrupt the exhibition business, as Netflix is perceived to not prioritize theatrical releases.