Paramount, owned by David Ellison, will acquire Warner Bros. Discovery following an intense bidding war. Warner Bros. Discovery declared Paramount Skydance’s offer of $31 per share a “superior proposal” over Netflix’s $82.7 billion all-cash bid, which Netflix chose not to augment. Netflix co-CEOs Ted Sarandos and Greg Peters stated that the deal was no longer financially viable at the necessary matching price. Consequently, Warner Bros. Discovery must pay Netflix a $2.8 billion termination fee, which Paramount will cover.
The acquisition encompasses Warner Bros. Discovery’s studios, HBO, streaming service, games, and networks like CNN, TBS, TNT, Discovery, and HGTV. With significant financial backing from Larry Ellison, Paramount will manage Warner Bros. Discovery’s $33 billion debt, supported by a $57.5 billion debt commitment from Bank of America Merrill Lynch, Citi, and Apollo Global Management. While Netflix’s share prices rose by 10% in after-hours trading, Paramount’s increased by 4.5%.
