Paramount Launches Hostile Takeover Bid for Warner Bros. Discovery

Paramount has announced plans to pursue a hostile takeover of Warner Bros. Discovery, bypassing the company's board to take an all-cash offer of approximately $30 per share directly to shareholders.

The move comes after Warner Bros. Discovery rejected Paramount's initial proposal in favor of a competing offer from Netflix. The Netflix deal, structured as a combination of cash and stock, values Warner Bros. Discovery shares at roughly $27.75 each.

A key distinction between the two offers lies in their scope. Netflix's agreement excludes cable networks CNN and Discovery, which would need to be spun off as separate entities before the transaction could close. Paramount's bid, by contrast, encompasses the entirety of Warner Bros. Discovery's assets.

The competing acquisition attempts have drawn attention from the White House. President Trump commented over the weekend that the Netflix-Warner Bros. Discovery merger could "be a problem" due to concerns about the combined company's size and market share. Trump indicated he intends to participate in the regulatory approval process for any merger involving the media companies.

Paramount is now asking Warner Bros. Discovery shareholders to reject the Netflix agreement and accept its higher-priced, all-cash alternative offer.