In a major development shaking the global media landscape, Warner Bros. Discovery (WBD) is reportedly on the verge of turning down a colossal $108.4 billion acquisition offer from a consortium of Paramount and Skydance Media. This decision comes despite a dramatic personal intervention and financial guarantee from Oracle's billionaire founder, Larry Ellison.
Ellison's $40 Billion Guarantee Fails to Sway WBD Board
According to a CNBC report, the WBD board remains unconvinced by the sweetened, Ellison-backed terms. The tech mogul personally offered a staggering $40 billion guarantee to secure the financing for the Paramount-Skydance deal, aiming to erase doubts about the bid's financial backing. Earlier, WBD had accused Paramount of misleading them about Ellison's support, demanding his "signature on the dotted line."
However, this substantial financial firepower has not been enough. The board's primary concern appears to be "deal certainty" over the higher price tag. Their commitment is firmly with a rival, friendly offer from streaming behemoth Netflix, valued at $82.7 billion in a cash-and-stock deal.
Netflix's Friendly Bid vs. Paramount's Hostile Takeover Attempt
The two offers present a clear contrast in strategy and risk. The Paramount-Skydance proposal is a hostile bid worth $108.4 billion, featuring a $30-per-share all-cash component and an increased regulatory termination fee.
On the other hand, Netflix's $82.7 billion friendly bid, while lower in face value, is perceived by market analysts as having a cleaner financing structure and significantly lower execution risk. A critical factor in WBD's calculus is a hefty $2.8 billion breakup fee it would owe Netflix if it walks away from their agreement.
Antitrust Hurdles and Industry Reshaping Consequences
Choosing the Paramount path would create a studio entity larger than Disney, a move guaranteed to attract intense regulatory scrutiny. Former US President Donald Trump has already indicated plans to be personally involved in the landmark acquisition, hinting at potential antitrust challenges.
If WBD formally rejects the Paramount-Skydance offer as expected, it could mark the end of one of the most expensive hostile takeover attempts in entertainment history. The outcome would solidify Netflix's position as the dominant streaming giant, fundamentally reshaping the competitive dynamics of the global media and entertainment industry.
