Netflix Secures $52B Warner Bros. Discovery Deal at $27.75 While Paramount Bids $30
Netflix board approved a $27.75 per share all-cash acquisition of Warner Bros. Discovery, valuing the deal near $52 billion. Paramount Skydance countered with a $30 hostile tender offer that includes quarterly ticking fees of $0.25 and covers Warner’s $2.8 billion breakup penalty.
1. Deal Terms
Netflix’s board has approved an all-cash bid to acquire Warner Bros. Discovery at $27.75 per share, valuing the transaction at approximately $52 billion. The deal secures all WBD assets, including film, TV and streaming platforms, under Netflix’s umbrella.
2. Rival Hostile Share Offer
Paramount Skydance launched a $30 per share hostile tender offer, sweetening its bid with a ticking fee that adds $0.25 per share each delayed quarter and legally covering Warner’s $2.8 billion breakup fee, aiming to mitigate regulatory review risks.
3. Financial and Regulatory Considerations
Netflix will need to arrange significant financing, potentially raising its debt ratio to fund the purchase, while both bids face antitrust scrutiny that could extend closing timelines and trigger Paramount’s ticking fee mechanism.
4. Shareholder Impact
The $2.25 per share premium from Paramount’s bid and ticking fee growth per quarter create an arbitrage spread, giving shareholders a clear premium choice but introducing volatility until regulators greenlight the final deal.