Although an agreement was reached last week for Netflix to acquire Warner Bros. Discovery, the situation has completely changed today. Paramount Skydance has challenged its rival by making a new all-cash offer of $108.4 billion for the company and taking the matter directly to the shareholders for consideration.
Paramount’s proposal of $30 per share in cash is significantly higher in both value and cash terms than Netflix’s $27.75 per share offer. One key difference is that while Netflix is targeting only the studios and streaming platforms, Paramount intends to acquire the company in its entirety, including the Global Networks division. Company CEO David Ellison stated that the current management, by choosing Netflix’s offer, has left shareholders in uncertainty, and they have the right to evaluate a more favorable cash proposal.
On the other hand, the Netflix-Warner Bros. Discovery deal has raised serious antitrust concerns, with even U.S. President Donald Trump suggesting that the merger could be problematic. Under the current terms, if WBD rejects Netflix and accepts another offer, it would have to pay $2.8 billion in termination fees. Company management has announced that it will review Paramount’s new offer but remains committed to the existing agreement for the time being.
