David Ellison is turning up the pressure in his pursuit of Warner Bros. Discovery.
On Monday, Ellison’s Paramount Skydance announced an all-cash tender offer to acquire all outstanding shares of Warner Bros. Discovery at $30 per share — the same terms offered privately to WBD’s board on December 1. The bid covers the entire company, including its TV networks such as CNN, TBS, and TNT.
This announcement follows Netflix and WBD’s recent deal, in which Netflix agreed to acquire Warner Bros.’ studio operations and HBO Max for $72 billion, with an enterprise value of $82.7 billion.
Paramount highlighted that its all-cash offer carries an enterprise value of $108.4 billion, including debt assumption. By comparison, Netflix’s offer combines cash and stock, valued at $27.75 per share ($23.25 in cash plus $4.50 in stock), contingent on stock collars and Netflix’s future performance. Paramount described this structure as “complex and volatile,” excluding the TV division, and placing the enterprise value at $82.7 billion.
“Paramount’s proposal offers WBD shareholders a financially and strategically superior option compared to Netflix,” the company said. “The Netflix transaction presents uncertain value, exposes shareholders to a prolonged multi-jurisdictional regulatory approval process, and involves a complicated mix of cash and stock.”
Representatives for Warner Bros. Discovery and Netflix did not immediately respond to requests for comment.
David Ellison, Paramount’s chairman and CEO, stated, “WBD shareholders deserve the opportunity to consider our all-cash proposal. Our public offer, mirroring what we privately presented to the board, provides superior value and a faster, more certain path to completion. The current WBD Board recommendation exposes shareholders to uncertainty in cash and stock valuation, the future of linear cable networks, and a challenging regulatory approval process. By presenting this offer directly to shareholders, we give them the power to act in their own best interests and maximize their share value.”
Paramount advises WBD shareholders to find additional details about the proposal at Stronger Hollywood.
