Paramount Skydance continues its efforts to outbid major streamer Netflix for the Warner Bros. Discovery Channel, despite Warner Bros. leadership repeatedly rejecting Paramount’s takeover bids.
Netflix announced in December last year that it would acquire a majority stake in Warner Bros. for $82.7 billion. Business – including the Harry Potter, Lord of the Rings and DC Universe franchises.
Days later, Paramount launched a hostile all-cash bid for Warner Bros., offering shareholders $30 per share for a purchase value of $108 billion. Warner Bros. has rejected Paramount’s offers eight times — even in revised versions.
Nonetheless, Paramount Entertainment said in an update on Thursday that the company maintained that its $30 per share offer was a “higher” bid.
“Our offer clearly provides WBD investors with greater value and a more certain and expedited path to completion,” Paramount CEO David Ellison said in a statement Thursday. “We have worked diligently on behalf of WBD shareholders throughout this process and remain committed to engaging with them on the merits of our offer and advancing our ongoing regulatory review process.”
Netflix and Paramount have made different demands in an ongoing bidding war. Netflix’s proposal aims to acquire Warner Bros. Studios and streaming businesses, including traditional TV programming and HBO Max. Paramount, by contrast, wants to acquire Warner Bros.’s entire business, which includes cable networks such as CNN and TNT in addition to studios and streaming.
“The board unanimously believes that Paramount’s latest offer remains below our merger agreement with Netflix in a number of key areas,” Samuel A. Di Piazza Jr., chairman of Warner Bros. Discovery’s board of directors, said in a statement Wednesday.
“Paramount’s offer continues to fail to provide sufficient value and includes provisions such as significant debt financing that would create risks to completion of the transaction and a lack of protection for our shareholders if the transaction does not close. Our binding agreement with Netflix will provide superior value with greater certainty, and Paramount’s offer does not impose significant risks and costs to our shareholders.”
If the deal between Netflix and Warner Bros. goes through, it would close in about 12 to 18 months, giving Netflix ownership of two of Warner Bros.’ three pillars and making Warner Bros. Discovery, which includes CNN, TNT, TBS and other networks, an independent company that remains publicly traded.
Lawmakers oppose big media mergers
Lawmakers have expressed concern about expected large-scale media mergers, arguing that large-scale mergers could harm media competition and drive up consumer prices.
President Donald Trump said the merger “could be a problem” given the sheer size of the combined market share, PBS reported.
“Netflix is a great company. They do a great job. Ted is a great guy,” the president added, referring to Netflix CEO Ted Sarandos. “I have a lot of respect for him, but this involves a lot of market share, so we’ll have to see what happens.”
Sen. Elizabeth Warren, D-Mass., said in a statement in December that the proposed merger “looks like an antitrust nightmare.”
She added, “A Netflix-Warner Bros. merger would create a massive media giant that controls nearly half of the streaming market, which could force Americans to raise subscription prices and reduce choices about what and how to watch, while putting American workers at risk.”
“Americans don’t like these mergers. They don’t want a few big companies to control what they see and hear,” Vermont Democratic Rep. Becca Balint said, according to The Hill.
“We want choices, more choices. When these companies merge, time and time again things get better for the people at the top and they get worse for the rest of us.”
