Paramount Skydance launches hostile bid for Warner Bros. Discovery — as Trump warns Netflix deal ‘could be a problem'

Core Viewpoint - Paramount Skydance has launched a hostile bid to acquire Warner Bros. Discovery (WBD) with an all-cash offer of $30 per share, which WBD previously rejected, amid concerns regarding Netflix's $72 billion acquisition of WBD's studio and streaming business [1][5][12]. Group 1: Acquisition Details - Paramount's offer is supported by equity from the Ellison family and RedBird Capital, along with debt financing from Bank of America, Citi, and Apollo [2]. - The Netflix deal, valued at $82.7 billion including debt, aims to create a significant entity in Hollywood, combining over 400 million streaming subscribers from Netflix and HBO Max [5]. - Paramount argues that its bid offers superior value and a quicker path to completion for WBD shareholders [4]. Group 2: Regulatory Concerns - President Trump has indicated that the Netflix-WBD deal could face antitrust scrutiny, stating he will be involved in the approval process [6][7]. - The Netflix acquisition does not require FCC approval as it excludes broadcast stations, but it is likely to face intense scrutiny from the US Department of Justice and other global regulators [8]. - Senior White House officials have already discussed antitrust concerns regarding the potential merger between WBD and Netflix [14]. Group 3: Market Reactions and Implications - Senator Elizabeth Warren has labeled the Netflix-WBD deal an "anti-monopoly nightmare," reflecting broader concerns in the industry [15]. - Netflix has committed to continuing theatrical releases for WBD films, marking a significant shift for the streaming service [17]. - The acquisition follows a recent $8.4 billion merger between Skydance Media and Paramount Global, which faced its own antitrust and political challenges [18].