Paramount Skydance’s $111 Billion $31-per-Share Offer Tops Netflix and Wins Warner Bros. Discovery Support
Paramount Skydance Corp. offered $31 per share in a $111 billion takeover proposal for Warner Bros. Discovery, topping Netflix’s $27.75 offer and prompting Warner Bros. to favor Paramount’s bid. Netflix’s withdrawal from its $82.7 billion deal triggers a $2.8 billion breakup fee and sparks investor arbitrage activity.
1. Paramount Skydance Raises Bid For Warner Bros. Discovery
Paramount Skydance Corp. submitted a revised takeover proposal offering $31 per share for Warner Bros. Discovery, valuing the deal at approximately $111 billion. This upsized bid exceeds the prior $27.75-per-share offer from Netflix and positions Paramount Skydance as the leading suitor.
2. Warner Bros. Discovery Board Leans Toward Paramount
Warner Bros. Discovery’s board has signaled preference for Paramount Skydance’s proposal, citing a clearer path to U.S. regulatory approval and a stronger valuation. The revised terms meet the threshold for further negotiations, putting Netflix’s agreement at risk.
3. Market Reaction and Arbitrage Activity
Netflix withdrew its $82.7 billion acquisition agreement, triggering a $2.8 billion termination fee payable to Netflix and prompting the company to resume share repurchases. Meanwhile, an options trader placed a $13.8 million May $90/$105 call spread bet, reflecting expectations of a potential Netflix share rally despite deal uncertainty.