Days after Netflix announced plans to acquire Warner Bros. Discovery for nearly $83 billion, including debt, Paramount launched a bold counteroffer, potentially sparking one of the largest takeover battles in Hollywood history. On Monday, Paramount revealed its all-cash bid of $30 per share, valued at $108 billion, which includes Warner Bros. Discovery’s Global Networks business. Paramount also urged Warner Bros. Discovery’s shareholders to reject Netflix’s proposal.
Paramount’s CEO, David Ellison, stated that the offer would strengthen Hollywood, benefiting the creative community, consumers, and the movie theatre industry. The company further claimed that Netflix’s offer would subject shareholders to a lengthy regulatory process with an uncertain outcome and a volatile mix of cash and equity. Paramount has reportedly submitted six proposals to Warner Bros. Discovery over the past 12 weeks.
While Paramount’s move could complicate Netflix’s acquisition plans, particularly for HBO Max and its movie studio, the bidding war has raised concerns in Hollywood. If Netflix fails to secure approval and Paramount’s bid succeeds, Netflix would owe a $5.8 billion breakup fee. Conversely, Warner Bros. Discovery would owe Netflix $2.8 billion if it accepts a rival offer.
