Overview
- The board is expected to meet next week to formally respond to Paramount Skydance’s amended offer, with multiple reports indicating a likely rejection though no final vote has occurred.
- Paramount’s hostile bid remains $30 per share in cash (about $108.4 billion enterprise value) and now carries Larry Ellison’s $40.4 billion personal equity guarantee and a higher reverse termination fee matching Netflix’s $5.8 billion, with the tender open through January 21.
- Warner Bros. Discovery previously agreed to sell its studios and HBO/HBO Max to Netflix in a cash-and-stock transaction valued around $82.7 billion, and walking away would trigger a $2.8 billion breakup fee.
- The Netflix structure preserves WBD’s plan to spin off its linear networks into Discovery Global, while board objections to Paramount’s offer include financing certainty, debt flexibility under Ellison oversight, and coverage of the breakup fee, with WBD carrying over $40 billion in debt.
- Both pathways face intensive regulatory and political scrutiny, WBD shares rose more than 170% in 2025 during the bidding contest, and investors are watching Netflix’s January 20 earnings for signals on financing and integration.