Paramount's $31 Bid Secures Warner Bros., Shares Surge 20.5%
Paramount raised its bid for Warner Bros. Discovery to $31 per share, valuing the company at about $111 billion including debt, prompting Netflix to exit the bidding war. Paramount plans to maintain separate studio operations while targeting $6 billion in cost savings through elimination of duplicate roles.
1. Paramount Raises Offer
Paramount Skydance increased its takeover bid for Warner Bros. Discovery to $31 per share, valuing the deal at roughly $111 billion including debt. The board labeled Paramount's offer superior and recommended it over Netflix’s earlier $27.75 bid.
2. Netflix Exits Bidding War
Netflix withdrew from the contest after deeming the deal financially unattractive, declining to match the $31 per share offer. Its previous bid of $27.75 per share had included Warner’s film library, studio and HBO assets.
3. Deal Valuation and Terms
The transaction values Warner Bros. Discovery at approximately $111 billion including debt and includes a $7 billion fee if regulatory approval is not obtained. Financing details highlight Paramount’s commitment to the acquisition despite potential regulatory scrutiny.
4. Integration and Cost Savings
Paramount intends to run Paramount and Warner Bros. as separate operations while seeking about $6 billion in annual savings through job cuts and elimination of duplicated functions. CEO David Ellison aims to expand the combined film slate to over 30 releases annually.