Paramount launches $108B hostile bid for WBD to counter Netflix deal
Paramount and Skydance launched a hostile $108.4 billion tender offer for Warner Bros. Discovery aiming to upend Netflix’s roughly $83 billion agreement to acquire WBD’s streaming and studio assets while spinning off CNN and other cable channels; WBD’s board has 10 days to respond and has indicated it considers the Netflix bid superior on financial grounds. Paramount says WBD “never engaged meaningfully” with prior proposals and has secured at least $24 billion from outside financiers (including PIF, L’imad Holding, QIA and Affinity Partners), but both deals face heavy regulatory and political scrutiny over market concentration and the future of CNN.
📌 Key Facts
- Paramount says Warner Bros. Discovery “never engaged meaningfully” with six separate proposals as Paramount launched a hostile tender offer; WBD’s board has 10 days to respond and has indicated Netflix’s bid is superior on financial grounds.
- Paramount’s hostile bid is backed by outside financiers — including Saudi PIF, L’imad Holding, Qatar Investment Authority (QIA) and Affinity Partners — who committed at least $24 billion and agreed to forgo board seats and voting rights.
- Netflix’s agreement with WBD is pegged at about $83 billion and would cover streaming and studio assets while spinning off CNN and other cable networks.
- Netflix co‑CEOs Greg Peters and Ted Sarandos pledged in a regulatory filing that Netflix will continue releasing movies theatrically after closing, said the deal would strengthen Warner’s studio and support jobs, and expressed expectation of winning regulatory approval.
- The Netflix offer’s planned carve‑out of CNN and other cable channels deepens uncertainty for CNN employees amid competing bids.
- Regulatory and political scrutiny is mounting: the transaction requires FTC/DOJ approval, analysts flag likely U.S. and European focus on production market power and streaming share, Sen. Elizabeth Warren warned the deal could concentrate streaming market share, and recent comments by former President Trump (including that CNN “should be sold”) plus Ellison’s ties to Trump have been cited as relevant to regulatory optics.
- NPR reported that Warner did not respond to its request for comment and that Netflix planned an investor call; NPR also noted that Paramount’s prior ownership paid $16 million to settle a Trump lawsuit against CBS’s 60 Minutes to help secure the Ellison/Skydance–Paramount acquisition.
📊 Analysis & Commentary (2)
"An opinion piece arguing that the proposed Netflix acquisition of Warner Bros. (the subject of competing bids and political scrutiny) would likely benefit consumers by enabling innovation, bundling efficiencies, and broader competition once the market is properly defined."
"An opinion piece critiquing and contextualizing the Netflix–Warner Bros. Discovery sale and Paramount’s hostile counterbid, arguing the bids’ structure (esp. treatment of cable assets like CNN), financing and political attention make the deals economically dubious and likely to face intense regulatory and political pushback."
📰 Sources (5)
- In a regulatory filing, Netflix co-CEOs Greg Peters and Ted Sarandos pledged that Netflix will release movies theatrically once its $83B acquisition of WBD’s TV/film assets closes.
- Netflix said the deal would 'strengthen' Warner’s iconic studio, support jobs, and that it expects to win regulatory approval.
- Article notes mounting political scrutiny, citing Sen. Elizabeth Warren’s criticism that a Netflix–WBD deal could control close to half the streaming market.
- MoffettNathanson analysis flags likely U.S. and European regulatory focus on production market power and streaming market share.
- NPR reports Paramount’s prior ownership paid $16 million to settle a Trump lawsuit against CBS’s 60 Minutes to help bring the Ellison/Skydance–Paramount acquisition to the finish line.
- Clarifies that Netflix’s offer would carve out CNN (spinning it off with other cable networks), deepening uncertainty for CNN employees amid competing bids.
- WBD board has 10 days to respond to Paramount’s tender offer and has indicated Netflix’s bid is superior on financial grounds.
- Trump’s new comments could be leveraged to argue perceived regulatory risk for the Netflix deal because it omits WBD’s cable networks, including CNN.
- Paramount’s outside financiers include PIF, L’imad Holding, QIA and Affinity Partners, contributing at least $24 billion and agreeing to forgo board seats and voting rights.
- Paramount executives said Warner 'never engaged meaningfully' with six separate proposals.
- NPR pegs the Netflix–Warner agreement at about $83B and specifies it covers streaming and studios while spinning off CNN and other cable channels.
- Warner did not respond to NPR’s request for comment; Netflix planned an investor call Monday.
- Trump offered noncommittal remarks, praising Netflix but noting market share concerns; article underscores the deal requires FTC/DOJ approval.
- Additional context on Ellisons’ ties to Trump and recent CBS News leadership changes (Bari Weiss named editor in chief; new conservative ombudsman) potentially relevant to regulatory optics.