Overview
- Netflix’s agreement covers Warner Bros.’ film and TV studios plus HBO/HBO Max, valuing WBD at $27.75 per share with $23.25 in cash and $4.50 in Netflix stock subject to a collar, and it requires spinning off the linear TV networks into a new Discovery Global.
- Paramount Skydance launched a hostile tender offering $30 per share in cash, valuing WBD at roughly $108 billion, pitching speed and certainty with deep financing backers.
- Warner Bros. Discovery said it is reviewing Paramount’s bid but has not changed its recommendation for the Netflix deal and has told shareholders not to act, with a response due by Dec. 22.
- Antitrust specialists expect intensive, multi-jurisdictional reviews that could take one to two years, as critics including Disney CEO Bob Iger and theater groups warn about pricing power and potential harm to cinemas.
- Markets signaled uncertainty with Netflix shares falling after the deal announcement, and WBD would owe Netflix a $2.8 billion break fee if it pivots to the Paramount offer.