Paramount Skydance Offers WBD $108.4 Billion To Snub Netflix’s $72 Billion Bid

UPDATE: 

Following months of back-and-forth bidding, Paramount Skydance is back with a new bid for Warner Bros. Discovery. 

Paramount's new deal is an all-cash, $30-per-share offer that's valued at $108.4 billion. 

The new hostile bid comes after Paramount Skydance CEO David Ellison said Warner Bros. never responded to their offer, and now Paramount wishes to challenge a Netflix dominance in the media and entertainment sector. Netflix appeared to have won the bid and even published official confirmations. 

Paramount's bid, which will be taken directly to WBD shareholders, is backed by equity financing from the Ellison family, private equity firm RedBird Capital, as well as $54 billion of debt commitments from Bank of America, Citi, and Apollo Global Management. 

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After much speculation, Netflix officially announced it will buy Warner Bros. Discovery for an equity value of $72 billion (a total enterprise value of approximately $82.7 billion).

The two companies have entered into a definitive agreement under which Netflix will acquire Warner Bros. and its film and television studios—HBO Max and HBO—for equity value of $72.0 billion or a total enterprise value of approximately $82.7 billion, representing a cash and stock transaction valued at $27.75 per WBD share.

The deal will see each WBD shareholder receive $23.25 in cash and $4.501 in shares of Netflix common stock for each share of WBD common stock outstanding at the closing of the transaction.

“Today, Netflix announced our acquisition of Warner Bros. Together, we’ll define the next century of storytelling, creating an extraordinary entertainment offering for audiences everywhere,” Netflix said in a statement posted on X.

The deal is expected to be completed in Q3 2026, following the previously announced separation of WBD’s Global Networks division, Discovery Global, into a new publicly traded company.

The move will help Netflix boost its product offering and reduce costs for consumers by combining Netflix's innovation, global reach, and streaming service with Warner Bros.' century-long legacy and wide media portfolio.

This includes bringing titles such as The Big Bang Theory, The Sopranos, Game of Thrones, The Wizard of Oz, and the DC Universe to Netflix, adding to Wednesday, Money Heist, Bridgerton, Adolescence and Extraction.

Netflix will also gain access to Warner Bros.' world-class studios, which are recognized as a leading supplier of television titles and filmed entertainment, enhancing Netflix’s studio capabilities.

The move will also allow Netflix to create greater value for talent and the opportunity to work with beloved intellectual property, tell new stories, and connect with more viewers.

Most notably, Netflix expects to achieve at least $2-3 billion in cost savings annually by the third year.

It also expects to attract and retain more members and drive more engagement with more incremental revenue and operating income.

 

What Did Netflix And Warner Bros. Discovery Stakeholders Say?

“Our mission has always been to entertain the world,” said Ted Sarandos, co-CEO of Netflix. “By combining Warner Bros.' incredible library of shows and movies—from timeless classics like Casablanca and Citizen Kaneto modern favorites like Harry Potter and Friends—with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we'll be able to do that even better. Together, we can give audiences more of what they love and help define the next century of storytelling.”

“This acquisition will improve our offering and accelerate our business for decades to come,” said Greg Peters, co-CEO of Netflix. “Warner Bros. has helped define entertainment for more than a century and continues to do so with phenomenal creative executives and production capabilities. With our global reach and proven business model, we can introduce a broader audience to the worlds they create—giving our members more options, attracting more fans to our best-in-class streaming service, strengthening the entire entertainment industry and creating more value for shareholders.”

“Today's announcement combines two of the greatest storytelling companies in the world to bring to even more people the entertainment they love to watch the most,” said David Zaslav, President and CEO of Warner Bros. Discovery. “For more than a century, Warner Bros. has thrilled audiences, captured the world's attention, and shaped our culture. By coming together with Netflix, we will ensure people everywhere will continue to enjoy the world's most resonant stories for generations to come.”

Do you think Netflix will boost its consumer base in the streaming sector and help it capture a stronger hold in the media and entertainment market?

Let us know in the comments below!