Paramount’s $31 Bid Beats Netflix’s $27.75 Offer for Warner Bros. Assets
Warner Bros. Discovery’s board deemed Paramount Skydance’s $31 per share all-cash bid for its studio and streaming assets a superior proposal, surpassing Netflix’s $27.75 offer and prompting Netflix to withdraw its bid. Paramount CEO David Ellison forecasts combined debt of about $79 billion upon closing, defining WBD’s post-merger leverage.
1. Paramount's Superior Proposal
Warner Bros. Discovery’s board determined that Paramount Skydance’s revised all-cash offer of $31 per share met the merger-agreement’s superior proposal criteria, eclipsing Netflix’s $27.75 bid and granting Paramount clear path to acquire the company’s studio and streaming business.
2. Netflix Withdrawal
Netflix chose not to raise its $27.75 per share offer and formally declined to match Paramount’s terms, citing financial discipline and returning focus to its organic growth strategy instead of pursuing the largest acquisition in its history.
3. Combined Leverage Profile
Paramount Skydance expects to assume approximately $79 billion of combined debt upon closing the transaction, establishing the new entity’s capital structure and influencing future refinancing and investment decisions.
4. Strategic Implications
The agreement delivers immediate cash value to Warner Bros. Discovery shareholders while Paramount secures a legacy Hollywood studio, and Netflix redirects capital toward content investments, share repurchases and its ad-supported tier.