Paramount launches $74.4B hostile tender for WBD to derail Netflix deal
After Netflix agreed to buy Warner Bros.’ studio and streaming businesses in a deal widely reported at roughly $72 billion (with some outlets citing higher figures) that would exclude WBD’s cable networks and follow a planned spin‑off of CNN/TNT/TBS, industry groups and regulators signaled intense scrutiny and markets reacted with WBD shares rising while Netflix and rivals slipped. Paramount Skydance then launched a hostile $30‑per‑share tender for WBD (~$74.4 billion) — including the cable assets Netflix’s deal omits — saying its offer is about $18 billion higher, could avoid a lengthy multi‑jurisdictional review, expires Jan. 8, 2026 unless extended, briefly boosted WBD and Paramount shares, and raised the prospect of a CNN–CBS combination amid political scrutiny.
📌 Key Facts
- Netflix agreed to buy Warner Bros. studio and streaming business; reported headline prices varied (initial PBS reporting cited $72 billion while other reports cited $82.7 billion). The Netflix transaction would exclude certain cable networks and is expected to close after Warner separates its Discovery Global cable operations (targeted Q3 2026).
- Paramount/Skydance launched competing bids: outlets reported both an unsolicited $108.4 billion all‑cash offer and a separate hostile tender offer of $30 per WBD share (about $74.4 billion equity value). The tender is set to expire Jan. 8, 2026 unless extended, and Paramount’s proposals include WBD’s cable assets that Netflix’s studio/streaming deal excluded.
- Paramount argued its proposals provide a quicker, more certain path to completion and criticized Netflix’s valuation of the cable assets; Paramount Skydance CEO David Ellison publicly pitched the deal as superior and said he would consider combining CNN’s newsgathering with CBS News if the bid succeeds.
- Market reaction changed through the story: initial premarket trading had WBD shares up nearly 3% while Netflix and Paramount fell more than 2%; after Paramount’s offers, WBD and Paramount opened roughly 5–6% higher while Netflix edged lower.
- Regulatory and political scrutiny is central: PBS flagged expected intense antitrust review (including from the Justice Department under President Trump); Trump said he would be involved in approval and warned the Netflix–WBD deal “could be a problem,” and Paramount warned Netflix’s proposal faces a lengthy, uncertain multi‑jurisdictional review.
- Industry groups and creators raised objections: Cinema United (representing about 30,000 U.S. and 26,000 international screens) formally opposed the deal and urged regulators to scrutinize it over theater‑closure risks; film producers sent an open letter to Congress warning of “cascading disastrous outcomes,” and the WGA also opposed the transaction.
- Netflix and Warner executives reiterated parts of their plan and rationale: Netflix said it would continue theatrical releases for Warner studio films to honor contracts, and on‑the‑record comments from Warner/Netflix leaders (including David Zaslav and Ted Sarandos) framed the strategic reasons for the deal. CNN leadership said a 2026 budget for its digital subscription push had been approved by the intended Discovery Global spinoff, signaling some operational plans are proceeding despite ownership uncertainty.
📊 Relevant Data
U.S. cable TV subscribers declined to 68.7 million in 2025, down from 105 million in 2010, due to ongoing cord-cutting and shift to streaming services.
U.S. Cable TV Subscribers 2025: Ongoing Decline & Cord-Cutting — Cable Compare
In the third quarter of 2025, Fox News Channel averaged 2,934,000 viewers in primetime, outperforming CNN and MSNBC combined in total viewers.
Fox News Channel Beats CBS and ABC in Third Quarter and Remains Leader in All of Television Year-to-Date — Fox News Press
Only 28% of Americans trust the media in 2025, marking a new low, with trust varying significantly by political affiliation.
Trust in Media at New Low of 28% in U.S. — Gallup News
81% of Democrats have trust in national news organizations in 2025, compared to much lower levels among Republicans.
Chart: Trust in News Ticks Up in 2025 — Statista
CNN's ratings decline in 2025 is driven by increased competition, shifting viewer behaviors towards streaming and online sources, and changes in programming.
CNN Ratings Decline: Reasons Behind the Viewership Drop — DHgate Smart
📰 Sources (7)
- Paramount Skydance CEO David Ellison said on CNBC he would combine CNN’s newsgathering operation with CBS News if the WBD bid succeeds.
- Paramount’s offer includes WBD’s cable networks (e.g., CNN, Discovery, HGTV, Food Network, TLC) that were excluded from Netflix’s studio/streaming deal, raising the prospect of a CNN–CBS News combination.
- CNN CEO Mark Thompson told staff a 2026 budget for CNN’s digital subscription push has already been approved by the intended Discovery Global spinoff, signaling plans are moving ahead despite ownership uncertainty.
- Warner Bros. Discovery had planned to spin off its cable networks into a separate company prior to the Netflix announcement.
- Article notes Trump’s mixed posture: allied with Ellison family but recently angered at a '60 Minutes' segment, adding political context to potential regulatory reception.
- Paramount initiated a hostile tender offer to WBD shareholders for $30 per share in cash (~$74.4 billion equity value).
- Paramount’s bid includes WBD’s cable assets (e.g., CNN/Discovery), contrasting with Netflix’s deal structure that excludes cable networks.
- Paramount claims its proposal is about $18 billion higher than Netflix’s and criticizes Netflix’s valuation of cable assets.
- Tender offer set to expire Jan. 8, 2026 unless extended.
- Paramount argues Netflix’s proposal faces a lengthy, uncertain multi-jurisdictional regulatory process; CEO David Ellison issued a statement touting increased competition and theatrical output.
- President Trump said he will be involved in the approval decision and that the Netflix–WBD deal 'could be a problem' due to size.
- Market reaction: WBD and Paramount shares rose ~5–6% at the open; Netflix edged lower.
- Paramount Skydance made an unsolicited $108.4 billion all-cash offer for Warner Bros. Discovery.
- The offer was made three days after Netflix agreed to buy Warner Bros. for $82.7 billion.
- CEO David Ellison said the bid offers 'a more certain and quicker path to completion.'
- PBS reports Warner Bros. would spin off specific cable networks — CNN, TNT and TBS — before the deal closes.
- Article highlights expected intense antitrust scrutiny from the Trump Justice Department.
- Notes Netflix beat Paramount and Comcast in a bidding war for Warner Bros.
- Identifies key franchises Netflix would gain access to: DC Universe, Game of Thrones and Harry Potter.
- Adds industry pushback details: an open letter from film producers to Congress warning of 'cascading disastrous outcomes' and WGA opposition.
- CBS reports Netflix announced a deal to buy Warner Bros. for $82.7 billion.
- The report characterizes the outcome as Netflix 'winning a bidding war,' indicating a competitive process.
- The announced price is materially higher than the earlier reported $72 billion figure.
- Closing timeline specified: transaction expected after Warner separates its Discovery Global cable operations in Q3 2026.
- Cinema United, representing 30,000 U.S. and 26,000 international screens, formally opposes the deal and urges regulators to scrutinize it, warning of theater closures.
- Premarket reaction: Warner Bros. Discovery shares up nearly 3%; Netflix and Paramount down more than 2%.
- Netflix reiterates it will continue theatrical releases for Warner studio films, honoring contractual agreements (restated with added context).
- On‑the‑record statements from David Zaslav and Ted Sarandos framing the strategic rationale.