Paramount Global has confirmed that it is holding firm on its offer of $30 per share to acquire Warner Bros. Discovery, despite the latter’s recent rejection of the bid. The media giant communicated on Thursday that it has no immediate plans to increase its offer beyond this price point. Paramount emphasized that its proposal is superior to the existing agreement between Warner Bros. Discovery and Netflix, urging shareholders to support its hostile takeover attempt.
The dispute between Paramount and WBD has intensified, centering on control over major entertainment properties including HBO, Warner Bros. studios, and other established media assets. Industry analysts on Wall Street had speculated that Paramount might increase its offer above $30 per share eventually to secure shareholder backing for a complete acquisition of WBD, which would include CNN. However, at this stage, Paramount remains steadfast at the $30 valuation.
Warner Bros. Discovery continues to advocate that its current plan to divest Warner Bros. and HBO to Netflix, excluding CNN and other cable operations, represents the best option for its shareholders. Paramount, conversely, is encouraging shareholders to reject their own board’s advice, recommending they tender shares to Paramount at the $30 per share rate.
WBD Board Rejects Paramount’s Hostile Takeover Bid
On Wednesday, Warner Bros. Discovery explicitly declined Paramount’s latest offer, labeling it "inadequate" and likening the bid to a precarious leveraged buyout. WBD cautioned that Paramount’s proposal introduces materially greater risks for both the company and its shareholders, which includes the possibility that the acquisition might fail to close altogether. In contrast, WBD described the Netflix deal as a more certain transaction.
Responding to these criticisms on Thursday, Paramount’s Chief Executive Officer David Ellison stated that their offer delivers "greater value and a more certain, expedited path to completion" for WBD investors. Paramount’s announcement reiterated that the effective per-share value from the Netflix deal is approximately $27.42, which they argued is clearly lower than Paramount’s $30 cash offer.
One of the central disagreements between the two companies revolves around the valuation of WBD’s cable assets. These include channels such as CNN, which are excluded from the Netflix acquisition. Instead, these cable businesses are expected to be spun off later this year into a new publicly traded entity called Discovery Global.
The Warner Bros. Discovery board has maintained that this new company will retain significant value independently. Paramount, however, has contended elsewhere that Discovery Global’s worth is roughly $1 per share. In its Thursday communication, Paramount further devalued these assets, assigning a zero-dollar value per share. The company supported this view by highlighting recent stock market performance of similar cable spin-offs, notably Versant, a Comcast-related entity.
Versant, which launched on Monday with a portfolio of cable channels including MS NOW and CNBC, has experienced a stock decline of approximately 30% since its initial public offering. This weak market response has been cited by Paramount as an indication of the limited valuation that the cable assets deserve.
In response to Versant's stock drop, a company executive told CNN that the initial selling pressure is expected to stabilize, with the stock price settling over the following weeks. This uncertainty around valuation underscores the contrasting perspectives on cable assets’ worth that remain a central feature of the ongoing acquisition disagreement.
As the standoff continues, Paramount pushes shareholders to consider the immediate financial incentives of its $30 per share cash offer, framing it as the more beneficial choice compared to the potentially complex and segmented arrangement currently favored by Warner Bros. Discovery’s board.
The battle for control involves weighing the certainty, risk, and potential returns of the competing proposals, with Paramount emphasizing the consolidated value offered in their full acquisition approach, while WBD champions the Netflix deal’s reduced risk profile. The outcome hinges on shareholder decisions and whether Paramount will eventually raise its bid to surpass resistance from WBD’s leadership and courts further investor support.