'Cash Is Still King': Paramount CEO David Ellison Throws $108 Billion All-Cash Bid To WBD Shareholders

Core Viewpoint - Paramount Skydance Corp. has launched a hostile all-cash tender offer for Warner Bros. Discovery, Inc., valued at $30 per share or approximately $108.4 billion, directly appealing to shareholders and challenging Warner Bros.' agreement with Netflix [1][2]. The Bid - The bid is positioned as a "superior alternative" to Netflix's plan, which involves a mix of cash and stock for specific assets, while Paramount's offer aims for a full buyout of Warner Bros., including its linear cable networks [2][3]. Regulatory Considerations - Paramount's legal advisors argue that a Netflix-WBD merger would face significant antitrust challenges globally, as regulators would not accept that Netflix competes in the same ad-supported market as platforms like Instagram or YouTube [3]. - Concerns have been raised by Warner Bros. regarding Paramount's reliance on non-U.S. funding, which could lead to a strict review by the Committee on Foreign Investment in the United States (CFIUS) [4]. Investor Backing - Notable investors supporting Paramount's bid include Saudi Arabia's Public Investment Fund, the Qatar Investment Authority, and others, with the company highlighting its favorable relationship with the Trump administration as a potential advantage in navigating regulatory challenges [5]. Financial Incentive - Paramount is offering Warner Bros. shareholders $17.6 billion more in cash compared to the deal with Netflix, emphasizing that cash remains a strong incentive for shareholders [6]. Market Reaction - Following the announcement, Netflix shares fell by 4%, while Paramount Skydance and Warner Bros. Discovery shares rose by 9% and 3.5%, respectively [7].