Paramount and Skydance have initiated a $108.4 billion hostile takeover attempt targeting Warner Bros Discovery

Paramount Skydance has initiated a hostile takeover bid for Warner Bros Discovery, following the latter's recent agreement to a deal with Netflix. The offer from Paramount stands at $108.4 billion, equating to $30 per share, and is an all-cash offer. Meanwhile, Netflix's arrangement focused solely on Warner Bros' streaming and studio operations at a rate of $27.75 per share.

Currently, Netflix's shares are experiencing a decline of 4.81%, whereas Warner Bros Discovery shares have climbed by 6%.

David Ellison, the head of Paramount, expressed, "Shareholders of WBD should have the chance to evaluate our superior all-cash bid for the entire entity." He emphasized that their public proposal, aligned with what was shared privately with Warner Bros. Discovery's Board, offered greater value and a more assured, faster resolution.

Ellison criticized the ongoing proposal from Warner Bros.' board, labeling it inferior due to its mix of cash and stock, potential future trading unpredictability of Global Networks' linear cable segment, and the difficult regulatory approval process. He urged shareholders to consider Paramount's proposition to optimize their share value.

Previously, Netflix revealed its intent to acquire Warner Bros for $82.7 billion, including its gaming division, following a competition for the company that began with an unsolicited bid from Paramount Skydance. Besides Paramount, Comcast also participated in the bidding before Netflix succeeded.

A Bloomberg report from the weekend indicated that David Ellison anticipated a win, based on a favorable connection with the administration, as noted during Bloomberg's Screentime event in the summer. Warner Bros was advised that future prospective buyers might face substantial obstacles owing to market dynamics.

Despite the absence of immediate feedback from the White House, there are notable concerns from lawmakers and industry stakeholders, suggesting comprehensive regulatory review ahead. According to the BBC, President Trump has apprehensions regarding the deal's effect on Netflix's market presence, and his son-in-law Jared Kushner supports Paramount's counter-offer, as per Axios.