Paramount Skydance has escalated its long-running pursuit of Warner Bros. Discovery by launching a hostile takeover bid valued at $30 per share, moving directly to shareholders after earlier attempts failed to gain traction. The all-cash offer matches the proposal that Warner Bros. Discovery declined last week and places the company’s enterprise value at approximately $108.4 billion. Paramount’s decision to bypass company leadership signals its determination to remain a central contender in the rapidly evolving streaming and entertainment landscape, especially after losing a prolonged bidding contest for key legacy assets to Netflix.
The proposed transaction is supported by significant financing commitments, including equity contributions from the Ellison family and RedBird Capital, paired with $54 billion in debt financing pledged by Bank of America, Citi, and Apollo Global Management. Paramount disclosed that part of the equity support is being provided by several Middle Eastern investment entities, among them Saudi Arabia’s Public Investment Fund, Abu Dhabi’s L’imad Holding Company PJSC, and the Qatar Investment Authority. Additional funding is coming from Affinity Partners, an investment firm founded by Jared Kushner. Paramount stated in regulatory filings that these outside partners have agreed not to seek board seats or governance rights, a stipulation designed to ensure the transaction falls outside the review scope of the Committee on Foreign Investment in the United States.
Shares of Paramount rose roughly 7% in early Monday trading, while Warner Bros. Discovery’s stock climbed about 5%. Netflix, which recently announced an agreement to acquire Warner Bros. Discovery’s studio and streaming assets, saw its shares fall more than 4%. Speaking publicly, Paramount Skydance CEO David Ellison said the company remains committed to securing a deal that would keep Warner Bros. Discovery intact rather than separating its portfolio into various asset groups. Ellison emphasized that Paramount’s offer provides substantially more cash to shareholders compared to the structure announced by Netflix, asserting that investors would ultimately favor the proposal with the stronger financial foundation.
Paramount Skydance initiated its interest in Warner Bros. Discovery in September and submitted three bids before the target company began a formal sale process that later attracted additional suitors. Netflix ultimately reached an agreement on Friday to purchase Warner Bros. Discovery’s studio and streaming operations for a mix of cash and stock valued at $27.75 per share, totaling roughly $72 billion. Paramount’s competing strategy involves acquiring the entire company, including major cable networks such as CNN and TNT Sports, as well as linear assets expected to be spun off as Discovery Global in 2026. Ellison said he estimates those cable operations to be worth about $1 per share, while Warner Bros. Discovery executives have privately assessed their value at closer to $3 per share.
According to Ellison, Paramount submitted a revised proposal on December 1 after Warner Bros. Discovery indicated that specific changes were required. He said the company increased its offer to $30 per share but did not receive further communication from CEO David Zaslav. Ellison noted that he informed Zaslav via text message that the new figure should not be considered Paramount’s final and absolute offer, indicating the possibility of an even higher bid as the takeover effort unfolds. As shareholders prepare to evaluate competing visions for the future of Warner Bros. Discovery, the coming weeks are expected to bring heightened scrutiny to the shifting balance of power across the global media and streaming industry.
