Paramount Skydance pushes hostile bid for Warner Bros. after losing to Netflix: "We’re here to finish what we started"

Highlights

• Paramount Skydance launches an all-cash hostile offer for WBD
  
• The $30-per-share bid goes directly to shareholders
  
• Move follows Netflix winning studio and streaming assets
  
• Paramount argues WBD should remain whole for shareholders’ benefit
  

Paramount Skydance goes direct to shareholders

Paramount Skydance, led by CEO David Ellison, launches a hostile bid to acquire Warner Bros. Discovery after losing out to Netflix in the bidding war for the company’s studio and streaming divisions. The offer, announced Monday, goes straight to WBD shareholders at $30 per share in cash , the same bid WBD rejected last week, according to people familiar with the talks.

The proposal is backed by equity financing from the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi and Apollo Global Management.

Ellison: ‘We’re here to finish what we started’

Speaking on CNBC’s Squawk on the Street, Ellison says the company intends to complete the process it began earlier this year. He emphasizes that Paramount put WBD “in play” and plans to continue pushing for a full acquisition.

Premarket trading reflects the heightened activity: Paramount shares rise about 3%, WBD climbs around 5%, while Netflix trends slightly lower.

Netflix’s deal shifts the landscape

On Friday, Netflix announced its $72 billion agreement to buy Warner Bros. Discovery’s studio and HBO Max streaming operations. The deal does not include WBD’s television networks such as CNN and TNT Sports.

Comcast also placed a bid for the studio and streaming assets, adding further competition to the process.

Paramount argues for keeping WBD intact

Paramount maintains that acquiring the full company, including networks, studios, and streaming services, is the strongest option for WBD shareholders. Executives also plan to highlight that their deal would likely clear regulatory review faster, given Paramount’s smaller market share and what they describe as a cooperative relationship with the Trump administration.

Regulatory pressure builds on Netflix deal

Netflix’s proposed purchase has already drawn antitrust scrutiny. Combining two of the largest streaming platforms has raised questions in Washington, with the Trump administration reportedly examining the deal with “heavy skepticism.” President Donald Trump has suggested the companies’ combined market share could become a “problem.”

According to SEC filings, Netflix would owe WBD $5.8 billion if regulators block the deal. WBD would owe a $2.8 billion breakup fee if it decides to withdraw in favor of another merger.

With Paramount Skydance now escalating its efforts, WBD shareholders face significant decisions about the future direction of the company.