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Benzinga
  • 3 months ago
Paramount Skydance has launched a hostile takeover bid for Warner Bros Discovery, going directly to shareholders with an all-cash $30 per share offer — well above WBD’s current trading price. The move comes just days after Netflix struck a deal to acquire WBD’s studio and streaming assets for $27.75 per share.

CEO David Ellison says Paramount is “finishing what we started,” backed by financing from RedBird Capital, the Ellison family, major Wall Street banks, and non-voting investments from Saudi Arabia’s PIF, Abu Dhabi’s L’imad Holding, Qatar Investment Authority, and Affinity Partners.

Paramount also revealed that $30 per share is not their final offer, setting up a high-stakes showdown among WBD shareholders, Netflix, and Paramount Skydance.

Warner Bros Discovery shares jumped over 4 percent on the news, while Paramount stock climbed more than 7 percent.

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00:00Paramount just launched a hostile bid to take over Warner Brothers Discovery and they're doing it by
00:05going straight to shareholders with an all-cash offer. This just turned into one of the biggest
00:10media battles of the decade. Paramount Skydance is offering shareholders $30 a share far above
00:16where Warner Brothers is trading right now around $27. And Paramount's own stock is jumping too,
00:22up around 7% today, trading in the mid $14 range. CEO David Ellison told CNBC they're trying to
00:29finish what they started after losing Warner Brothers Discovery's studio assets to Netflix last
00:34week. That Netflix deal valued Warner Brothers Discovery at $27.75 a share, meaning Paramount is
00:40trying to outbid them with almost $18 billion more in cash. The hostile offer is backed by the Ellison
00:46family, Redbird Capital, major banks, and even non-voting investment from the Saudi, Abu Dhabi,
00:52and Qatar sovereign funds. And Ellison says $30 isn't even their final offer. This takeover fight
00:58isn't over and the next move likely comes from Warner Brothers Discovery shareholders.
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