Paramount Skydance Targets WBD Shareholders With $74B Hostile Bid
The $30-per-share, all-cash offer seeks to derail a rival agreement with Netflix, arguing it provides superior value and certainty to investors.
Paramount Skydance (PSKY) has dramatically escalated its pursuit of Warner Bros. Discovery (WBD), taking a forceful $30.00-per-share all-cash offer directly to WBD’s shareholders. The move, a classic hostile takeover tactic, seeks to bypass WBD’s board and scuttle a previously agreed-upon deal with streaming giant Netflix (NFLX).
The offer values Warner Bros. Discovery at approximately $74.3 billion based on its outstanding shares. In a direct appeal, PSKY positioned its proposal as "materially superior" to the Netflix agreement, emphasizing the certainty and immediate value of its all-cash terms. Shares of Warner Bros. Discovery surged on the news, climbing to $29.43 in afternoon trading, just shy of the offer price, signaling strong investor belief that a sale is increasingly likely.
A Tale of Two Bids
PSKY's aggressive move followed a definitive agreement announced on December 5, 2025, for Netflix to acquire WBD's studio and streaming assets. The Netflix deal is a more complex, cash-and-stock transaction valued at approximately $27.75 per share, composed of $23.25 in cash and $4.50 in Netflix stock. Crucially, the Netflix agreement requires WBD to first spin off its portfolio of linear cable networks—including CNN, TNT, and the Discovery channels—into a separate, publicly-traded entity before the acquisition could close, as detailed in a report by The Guardian.
In contrast, Paramount Skydance’s offer is for the entire Warner Bros. Discovery enterprise. In a publicly released statement, PSKY argued that the structure of the Netflix deal exposes WBD shareholders to the volatility of NFLX stock and the uncertain market value of a newly spun-off company.
"We believe our all-cash offer provides a clear and direct path to maximizing value for Warner Bros. Discovery shareholders," PSKY stated, questioning whether the WBD board had fulfilled its fiduciary duty by not fully engaging with its earlier proposals.
Financial Firepower
To back its audacious bid, Paramount Skydance confirmed it has secured a formidable financing package, including $41 billion in equity commitments and $54 billion in debt. The company stressed that its offer has no financing contingencies, a clear signal of its high conviction and readiness to execute the transaction swiftly.
This financial muscle stands in stark contrast to the stock component in Netflix’s offer, a point PSKY has repeatedly highlighted. The move puts intense pressure on WBD's board, which had previously endorsed the Netflix deal. The board must now formally review the unsolicited PSKY offer and make a recommendation to its shareholders.
The market reacted swiftly to the escalating bidding war. While WBD shares rallied toward the new offer price, shares of Paramount Skydance fell by 1.7% to $14.47, a common occurrence for an acquiring company facing the prospect of taking on massive debt. Shares of Netflix, meanwhile, rose 1.35% to $93.96, as investors perhaps see a path where the company avoids a costly and dilutive bidding war.
A New Chapter in the Streaming Wars
Either deal would radically reshape the media landscape. A Netflix-WBD combination would unite two of the largest streaming services, although it would face significant regulatory scrutiny over market concentration. Analysts have noted that both potential deals will likely face a rigorous U.S. antitrust review.
A successful takeover by Paramount Skydance would merge its own content library with WBD's iconic assets, which include the Warner Bros. film studio, HBO, the DC Comics universe, and the Harry Potter franchise. This would create a consolidated media behemoth with the scale to compete more effectively against giants like Netflix and Disney.
The ball is now in the court of WBD's board and, ultimately, its shareholders. They must weigh the immediate, certain cash from Paramount Skydance against the more complex, stock-and-spinoff structure offered by Netflix. The outcome of this high-stakes battle will likely set the strategic direction for the entertainment industry for years to come.