Paramount Launches $108 Billion Hostile Bid for Warner Bros. Discovery After Netflix Pact

Overview

• Netflix announced on Dec. 5 an agreement to buy WBD’s studios and streaming division for about $72 billion (enterprise value roughly $82.7 billion) at $27.75 per share, with Netflix and HBO Max continuing to operate separately as WBD prepares a spin-off of its cable networks.
• President Donald Trump said he will be involved in the review and warned the acquisition could be a problem given Netflix’s market share, signaling elevated political and regulatory scrutiny.
• Paramount submitted a hostile offer on Dec. 8 to acquire WBD for about $108 billion, or roughly $30 per share, a higher bid that could upend Netflix’s agreement.
• Hollywood unions, producers, directors and cinema exhibitors criticized the proposed combination over jobs, pricing and theatrical windows, as U.S. and European regulators are expected to conduct lengthy antitrust reviews that may require conditions.
• Reporting indicates WBD CEO David Zaslav stands to gain substantially from change‑of‑control provisions tied to recently revised stock options if a sale is completed.