Paramount Skydance has launched a hostile tender offer of $108.4bn to buy Warner Bros. Discovery, frustrated by the absence of a response to its prior proposals. According to a document filed with the SEC, Paramount CEO David Ellison would have tried several times to reach Warner counterpart David Zaslav, without success. The discussions that began in September met with repeated refusals, with Zaslav particularly noting the lack of sufficient financial guarantees, despite the backing of sovereign funds.
On December 4, after another improved offer that remained unanswered, Paramount decided to address Warner Bros shareholders directly, highlighting a cash proposal that is more generous than Netflix's, valued at $82.7bn. To avoid regulatory hurdles, Paramount changed the structure of its offer, notably excluding the Chinese group Tencent. Meanwhile, Warner Bros was already conducting exclusive negotiations with Netflix.
The Ellison family at the helm
If it goes through, the deal could upend the global media landscape. Warner Bros holds major assets such as DC Comics, the Warner studio and HBO. For Netflix, a takeover would consolidate its dominant position in streaming. Paramount, meanwhile, is seeking to reach critical mass against the sector giants. Warner Bros said it would review the offer, although has not changed its recommendation in favor of Netflix. The platform's co-CEO Ted Sarandos called Paramount's move "predictable" and expressed confidence in the outcome of the negotiations.
Paramount accuses Warner Bros of delaying the signing of an agreement to access sensitive data, which would have disadvantaged it. An interview with John Malone, chairman emeritus of Warner, in which he shows his preference for Netflix, is also cited. Paramount's offer will remain open for 20 business days, renewable. Warner Bros has 10 days to respond. "We are here to defend the value for our shareholders and those of Warner Bros Discovery," David Ellison said.
His father, tech billionaire Larry Ellison, reportedly called Donald Trump after Friday's announcement of Netflix's deal to tell him that this transaction would harm competition, the Wall Street Journal reported on Monday. The US President weighed in on the matter, while last night reiterating that he has no particular ties with either Netflix or Paramount.
