Paramount makes bold all-cash bid for Warner Bros.
Paramount has announced a public tender offer to acquire Warner Bros. Discovery (WBD) for 30 dollars per share, presenting its all-cash proposal as a faster, more certain and higher-value alternative to the deal the company recently signed with Netflix.
In a statement released on December 8, Paramount said its offer provides “a superior and more certain path to completion” for WBD shareholders, valuing the company at an enterprise level of 108.4 billion dollars. The bid represents a 139 percent premium compared with WBD’s undisturbed share price of 12.54 dollars recorded on September 10, News.Az reports, citing Qazinform.
Paramount argues that its proposal delivers 18 billion dollars more in cash to shareholders than the Netflix agreement, which values WBD at 27.75 dollars per share through a mix of cash and stock. Unlike the Netflix transaction, which excludes the Global Networks business and depends on a structure vulnerable to market volatility, Paramount’s bid is fully in cash and seeks to acquire all of WBD’s operations. The company also believes its offer can secure regulatory approval more quickly, while the Netflix combination may face tighter scrutiny due to concerns about concentration in global subscription video-on-demand markets.
If completed, Paramount says the merger would create a global media company with significant scale across film studios, television networks, streaming platforms and sports rights. The company plans to maintain the studios of both groups, continue theatrical releases, integrate Paramount Plus with HBO Max and build a wider sports portfolio that includes the NFL, the Olympics, the UFC and major U.S. college leagues. Paramount also projects more than 6 billion dollars in cost synergies, in addition to over 3 billion already targeted under its restructuring program.
U.S. President Donald Trump is expected to take part personally in reviewing the proposed merger between Netflix and Warner Bros. Discovery.
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