Paramount has issued a hostile all-cash tender offer to acquire Warner Bros. Discovery (WBD) at $30 per share, valuing the company at $108.4 billion and directly challenging WBD’s previously accepted deal with Netflix.
The proposal represents a 139% premium over WBD’s September share price of $12.54. Paramount dismissed Netflix’s earlier bid as “inferior and uncertain.”
Paramount CEO David Ellison stated:
“WBD shareholders deserve the chance to evaluate our superior all-cash offer.”
Warner Bros. Discovery had agreed last week to Netflix’s $27.25-per-share offer—valued at roughly $82.7 billion—for its studio division and streaming service, HBO Max. Paramount’s bid, however, aims to acquire the entire company, including major cable networks such as CNN, TBS, and the Discovery Channel.
Paramount said in a statement:
“Our proposal offers a stronger alternative to the Netflix deal, which delivers lower and uncertain value while subjecting WBD shareholders to a lengthy, multi-jurisdictional regulatory approval process.”
Ellison added:
“We believe our offer will help build a stronger Hollywood and serves the best interests of creators, audiences, and the theater industry.”
Following the announcement, WBD shares gained more than 6%, Paramount rose over 3%, and Netflix dropped more than 3% in early trading.
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