"Choose Your Destiny": What Will Happen to Warner Bros.' Gaming Business After the Battle Between Netflix and Paramount

A corporate battle has erupted over the sale of Warner Bros. Discovery. At stake are the futures of numerous IPs, including video games. Today we will explore the financial details of the offers from Netflix and Paramount, and also address the potential fate of WB Games.

Deal Structure: Differences Between Netflix and Paramount's Offers

On December 5th, Netflix announced the commencement of its purchase of Warner Bros. Discovery. Essentially, this is a classic M&A deal, agreed upon with the target company's board of directors.

However, on December 8th, Paramount Skydance made a move with what is known as a "tender offer," bypassing the management of WBD. This is an attempt at a hostile takeover, where the buyer directly approaches the shareholders, offering to buy their shares at a price slightly or significantly above market value. A substantial premium on the price is also needed here to outbid Netflix's offer.

The management of WBD is required to respond to Paramount within 10 business days. The offer itself is valid until January 8, 2026.

Now, let's delve into the structure of the deal from each contender's perspective.

Here's how Netflix's offer is structured: