Paramount Launches Hostile Takeover Bid for Warner Bros. Discovery

[SRW1000]

A new suitor has arrived.

From Variety:
David Ellison is not going away quietly in his quest to land Warner Bros. Discovery.

On Monday, Ellison’s Paramount Skydance announced it has commenced an all-cash tender offer to acquire all of the outstanding shares of WBD for $30 per share — the same terms it offered in a Dec. 4 bid submitted to the Warner Bros. Discovery’s board. Paramount’s proposed transaction is for the entirety of Warner Bros. Discovery, including the TV business with CNN, TBS, TNT and other networks.


Paramount’s announcement, taking its bid directly to WBD shareholders, comes after Netflix and Warner Bros. Discovery revealed their binding agreement Friday under which Netflix would buy Warner Bros.’s studio operations, HBO and HBO Max for $72 billion (with an enterprise value of $82.7 billion).

According to Paramount, its all-cash offer equates to an enterprise value of $108.4 billion (including assumption of debt) with an equity value of $77.9 billion. In contrast, the Netflix proposal entails “a volatile and complex structure” valued at $27.75/share in a mix of cash ($23.25) and stock ($4.50), subject to collar and the future performance of Netflix, equating to an enterprise value of $82.7 billion (excluding the TV biz), per Paramount.

Paramount said its deal offer for WBD would close within 12 months, compared with Netflix’s projected 12-18 months for completing its deal. WBD is required by law to inform shareholders within 10 business days whether it will accept or reject Paramount Skydance’s $30/share offer. Paramount’s tender offer, which was approved unanimously by its board, is scheduled to expire at 5 p.m. ET on Jan. 8, 2026, unless the offer is extended.
Lots of additional information in the full article.

Looks like we may have the start of a bidding war.

[bmoney]

Sorry David for saying the deal
Is done lol. You were right. I was wrong. 

[David Vaughn]

Sorry David for saying the deal
Is done lol. You were right. I was wrong.

No worries. Here's a great rundown of the trouble that Hollywood has caused for itself. Makes a lot of great points that I'm sure we all could agree with:  LINKY

[SRW1000]

David has been proven correct as Netflix had dropped out of the bidding war.

Here's one of many articles with the details:

Netflix Backs Out of Warner bros. Deal, Paramount Poised to Win

This is still pending regulatory approval.

[David Vaughn]

David has been proven correct as Netflix had dropped out of the bidding war.

Here's one of many articles with the details:

Netflix Backs Out of Warner bros. Deal, Paramount Poised to Win

This is still pending regulatory approval.

It's weird, but my original post disappeared. The forum software hates me

[SRW1000]

It's weird, but my original post disappeared. The forum software hates me

Were you thinking of the replies you posted in this original thread, back when the whole thing started?

Netflix to Buy Warner Bros. and HBO Max in $82.7 Billion Deal - A/V Industry News - AVS Discussions

[David Vaughn]

Were you thinking of the replies you posted in this original thread, back when the whole thing started?

Netflix to Buy Warner Bros. and HBO Max in $82.7 Billion Deal - A/V Industry News - AVS Discussions

Maybe that was it  Senior moment, I guess. The software only deletes some of my reviews

[Barry]

Can movie theater survive?

If this merger takes place, we have lost another major studio.  We lost 20th Century Fox just a few years ago.

They all say that they’re going to continue making movies but Disney’s Take over of Fox has led to much fewer movies. Paramount sees an opportunity to take over HBO, HBO Max, and several successful cable stations. They also get access to a huge library of movies that are needed for streaming and cable.

With much fewer studios can movie theater survive? We used to get a big movie a week now we get a big movie a month, if that. And they don’t stay long in the theater they go on streaming rather quickly. 

It also means that Paramount gets DC Comics. I wonder if Disney had taken over Warner Brothers, but we see a huge amount of crossover movies with the DC and Marvel characters

But this is really a sad day for movie goers

[bmoney]

Three of my local theaters have closed in the last week or two. All different brands too

[SRW1000]

Can movie theater survive?

If this merger takes place, we have lost another major studio.  We lost 20th Century Fox just a few years ago.

They all say that they’re going to continue making movies but Disney’s Take over of Fox has led to much fewer movies. Paramount sees an opportunity to take over HBO, HBO Max, and several successful cable stations. They also get access to a huge library of movies that are needed for streaming and cable.

With much fewer studios can movie theater survive? We used to get a big movie a week now we get a big movie a month, if that. And they don’t stay long in the theater they go on streaming rather quickly.

It also means that Paramount gets DC Comics. I wonder if Disney had taken over Warner Brothers, but we see a huge amount of crossover movies with the DC and Marvel characters

But this is really a sad day for movie goers

I would have preferred to see Warner remain independent, and there's still a small chance that could happen based on the regulatory process, but the odds for movie theaters are better than if Netflix had gained control.

Plus, Paramount still releases films on physical media, while those are a rarity for Netflix titles.