U.S. media and content corporations Paramount and Skydance have formalized a hostile takeover of Warner Bros. Discovery and begun a share purchase process targeting major shareholders. It comes three days after Netflix signed a $72 billion acquisition deal, intensifying the competition over the takeover of Warner Bros.
On the 8th (local time), CNBC reported that Paramount plans to propose a tender offer to Warner Bros. shareholders to pay $30 per share in cash. This is the same price that Paramount previously proposed directly to Warner Bros. but was rejected.
On the 5th, Netflix signed a final agreement to acquire Warner Bros. for $72 billion, with a per-share purchase price of $27.75. Paramount has effectively reentered the competition by offering a higher price than Netflix.
Paramount has warned in a letter to the Warner Bros. board that a Netflix acquisition would face significant regulatory risks in both the U.S. and overseas markets, arguing that the transaction would be difficult to finalize.
Paramount's declaration of a hostile takeover attempt is seen as pushing the Warner Bros. M&A battle into a new phase.