Paramount Skydance (PSKY) has launched a hostile $108.4 billion all-cash takeover bid for the entirety of Warner Bros. Discovery (WBD). With this move, Paramount aims to directly appeal to shareholders to reject the “inferior” offer from Netflix (NFLX).
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Following the news, WBD stock jumped about 7%, as investors anticipated a bidding war. Paramount rose 9%, while Netflix slipped more than 3%. Paramount’s hostile move points to a high-stakes showdown between two Hollywood giants.
Paramount Goes Straight to Shareholders
Today, Paramount announced it is bypassing WBD’s board and taking its proposal directly to shareholders. The bid offers $30 per share in cash, valuing WBD at $108.4 billion, compared with Netflix’s $82.7 billion cash‑and‑stock agreement.
Unlike Netflix’s deal, which only covers WBD’s Hollywood studios and streaming business, Paramount is bidding for all of WBD, including its global networks like CNN and Discovery.
The bid is backed by equity financing from Larry Ellison, RedBird Capital, and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi. Also, Paramount has $54 billion in debt commitments from major banks.
Why Paramount Thinks Its Offer Is “Superior”
Paramount emphasized that its bid delivers $18 billion more in cash than Netflix’s structure, which includes stock tied to Netflix’s future performance.
On the regulatory front, CEO David Ellison argued that combining Netflix with HBO Max would create antitrust hurdles, while Paramount’s acquisition of WBD has a quicker, more certain path to regulatory approval.
Also, Ellison said a potential Netflix-WBD combination would be “bad for Hollywood” and consumers due to its potential market power, while a PSKY-WBD combination would “enhance competition” and be more consumer-friendly.
Is Netflix Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Netflix stock is Moderate Buy, based on 27 Buy, nine Hold, and two Sell ratings over the past three months. The average NFLX stock price target of $134.30 reflects a potential 39.5% upside.
See more NFLX stock analyst ratings
Is PSKY Stock a Good Buy?
Turning to Wall Street, PSKY stock has a Moderate Sell consensus rating based on one Buy, eight Holds, and five Sells assigned in the last three months. At $14.36, the average Paramount price target implies 0.83% downside risk.
