Overview
- WBD’s board plans to meet next week to respond to Paramount Skydance’s amended hostile bid, with multiple reports indicating a likely rejection as the Netflix agreement remains the recommended route.
- Paramount’s offer stays at $30 per share in cash with an enterprise value of about $108.4 billion, an increased $5.8 billion reverse termination fee, an extended tender deadline to January 21, and a $40.4 billion personal financing guarantee from Larry Ellison.
- Under the board-backed Netflix deal, WBD would sell studios and HBO/HBO Max for $27.75 per share ($23.25 cash plus roughly $4.50 in Netflix stock) while planning to spin off its linear networks as Discovery Global in 2026.
- WBD cites financing certainty, leverage concerns and execution risk in opposing Paramount’s bid, and a switch from Netflix would require paying a $2.8 billion breakup fee.
- Regulatory scrutiny in the U.S. and Europe and WBD’s more than $40 billion debt remain central risks, as the stock trades below $30 (recently around $28.79) and some investors suggest Paramount may need to raise its price.