Warner Bros Discovery Takeover Battle Paramount and Netflix Compete in $108 Billion Bidding War

Warner Bros Discovery Takeover Battle: Warner Bros Discovery (WBD) is considering reopening takeover discussions with Paramount, potentially escalating a high-stakes bidding war with Netflix for control of the media giant.

According to reports, WBD’s board is debating whether to re-engage with Paramount, which has launched a $108.4 billion hostile cash offer directly to shareholders. The move is aimed at disrupting WBD’s previously agreed merger deal with Netflix.

Paramount Strengthens Its Bid

Paramount has offered to cover a $2.8 billion break-up fee owed to Netflix if WBD withdraws from its agreement. It has also proposed backing a multibillion-dollar refinancing plan expected to reduce $1.5 billion in costs.

Additionally, Paramount introduced a “ticking fee” of about $650 million in cash per quarter if the transaction is not completed by year-end.

To reinforce its public policy efforts, Paramount recently appointed Rene Augustine, a former attorney in the Trump administration, as senior vice-president of global public policy.

David Ellison, Paramount’s chair and chief executive, said the company remains firmly committed to delivering full value to WBD shareholders.

Shareholder Dynamics

WBD confirmed it is reviewing Paramount’s revised offer. Some smaller investors, including Pentwater Capital Management and Ancora Holdings Group, have urged the board to engage with the rival bidder.

However, shareholders representing less than 2% of WBD stock have so far formally backed Paramount’s hostile bid. The deadline for the offer has been extended twice and now stands at 20 February.

If WBD formally enters talks with Paramount, it would be required to notify Netflix, a step that could trigger further improved bids.

What Netflix Wants

In January, Netflix enhanced its proposal by converting it into an all-cash offer for WBD’s studios and streaming businesses.

Under the proposed deal, Netflix would acquire key assets such as Warner Bros. and HBO, including major franchises like Harry Potter, Superman, and Batman, along with popular shows such as Game of Thrones, The White Lotus, and Succession.

Netflix does not plan to acquire WBD’s global networks division, which includes CNN, Cartoon Network, and Discovery Channel. That unit would be spun off, with investors retaining a stake.

In contrast, Paramount is seeking full control of the entire company.

WBD is expected to hold a special shareholders’ meeting in April to vote on the Netflix merger.

News in Brief (Warner Bros Discovery Takeover Battle)

• WBD is considering reopening takeover talks with Paramount.
• Paramount has launched a $108.4 billion hostile cash bid.
• The company offered to cover Netflix’s $2.8 billion break-up fee and added financial incentives.
• Netflix’s all-cash deal targets WBD’s studios and streaming assets but excludes its global networks division.
• A final decision from WBD’s board is still pending, with a shareholder vote expected in April.