Latest Update On Paramount’s Bid To Acquire WBD Amid Netflix Competition

Submitted by Tom Araya on

Warner Bros. Discovery (WBD), the broadcaster for AEW programming, previously announced an agreement to sell its studio assets and Max streaming business to Netflix. This deal is valued at $82.7 billion in enterprise terms. In response, Paramount submitted a bid to acquire WBD for $108 billion, which was a direct challenge to Netflix. However, WBD's board dismissed Paramount's initial offer, citing concerns about its certainty and structure.

Since then, Paramount has updated its offer to WBD, reaffirming a $30-per-share bid. This fully financed cash offer aims to acquire 100 percent of the network and directly addresses the funding concerns raised by WBD's directors. This development follows WBD's decision to support Netflix’s competing offer and recommend that shareholders reject Paramount’s earlier proposal.

Larry Ellison, the founder of Oracle and controlling shareholder of Paramount, provided an irrevocable personal guarantee covering $40.4 billion in equity financing and related claims. Furthermore, Paramount has pledged not to alter or revoke assets held in the Ellison family trust throughout the process.

To support this claim, Paramount released documentation showing that the trust holds approximately 1.16 billion Oracle shares. The company argues that this disclosure eliminates doubts regarding financing certainty. Additionally, Paramount has revised operational terms to provide greater flexibility related to interim operations, debt refinancing, and representations. The regulatory reverse termination fee has increased to $5.8 billion, matching the protections outlined in Netflix’s proposal.

One remaining condition is that Paramount requires WBD to retain full ownership of its Global Networks business, which it values as “stub equity,” contrasting it with the limited transparency regarding debt adjustments in Netflix’s offer. The deadline for the tender offer has been extended to January 21, 2026. As of December 19, fewer than 400,000 WBD shares had been tendered. David Ellison, Chairman and CEO of Paramount, continues to present the revised bid as superior in terms of value and long-term strategy, urging shareholders to reconsider their options.