What seemed to be a done deal is once again facing uncertainty.
On Monday, December 8 (US time), multi-billion media conglomerate Paramount Skydance (PSKY) officially announced its hostile takeover bid for Warner Bros. Discovery (WBD).
Worth a whopping US$108.4 billion, the all-cash tender offer seeks to acquire all of the outstanding shares of WBD for US$30 per share, which is also reportedly the same terms that Paramount Skydance offered in its prior bid submitted to the board of Warner Bros. Discovery.
This action has been launched to obliterate the earlier announcement of acquisition of streaming giant Netflix of WBD’s film and television studios, as well as HBO and HBO Max, for US$72 billion.
In its proposal, PSKY is not just looking to take what Netflix wanted to buy, but the entirety of the current Warner Bros. Discovery, which include the linear television business portfolio comprising of CNN, Discovery Channel, Cartoon Network, and other more.
Initially, it was already revealed that these stations would be spun off to a separate entity called Discovery Global prior to Netflix’s takeover of the film and TV studio business.
“We believe our offer will create a stronger Hollywood,” said David Ellison, CEO of Paramount Skydance, which the company itself was born after a merger between Paramount Global and Skydance Media earlier this year.
Meanwhile, the board of directors at Warner Bros. Discovery said in its statement, “[…]consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix, Inc.,”
It has set the period of 10 business days to review the offer made by PSKY.
Netflix co-CEO Ted Sarandos was also quoted at a conference that their team had already expected bid and also took a swipe at Paramount, saying, “In the offer that Paramount was talking about today, the Ellisons were talking about $6 billion of synergies. Where do you think synergies come from? Cutting jobs? So we’re not cutting jobs. We’re making jobs.”
Announced last Friday, the merger between Netflix and WBD’s studios is seen to bringing under one roof Warner Bros.’ library of shows and movies, which include classics like Casablanca and Citizen Kane and modern favorites like Harry Potter and Friends, with Netflix’s popular titles like Stranger Things, KPop Demon Hunters, and Squid Game.