Lights, Drama, Action! Paramount launch aggressive bid to take Warner Bros. away from Netflix!

Paramount have made a big swing, offering $108 billion for the acquisition of Warner Bros. and are now going to WBD shareholders to sway the vote!

Scified EditorialsBy Chris 22h agoComments

Things are heating up on the business front in Hollywood! As expected, Paramount have officially launched a hostile bid to take Warner Bros. away from Netflix. Paramount's offer is cleaner, more simple and more lucrative for current WBD shareholders when compared to the Netflix deal and if enough shareholders see this value and decide to vote in favor of Paramount, it could very well take the victory away from Netflix.

Paramount vs. Netflix Offers

To understand the tug-of-war happening right now, we must understand what each company is offering. Netflix's $82.7 billion offer doesn't encompass all of Warner Brothers assets – they wish to pick and choose parts of the company which work for them and fragment the remaining portions. The deal also offers a combination of cash and stock to shareholders. On the other side, Paramount wants ALL of Warner Brothers and are willing tonpay extra for it – with a straightforward cash buyout. They've now offered an additional $18 billion to their initial offer, bringing their total bid to $108 billion!

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Paramount further sweetened the deal by assuring they would continue to release films theatrically – something many in Hollywood fear Netflix would steer away from.

Paramount has more to lose

Paramount's future has become uncertain, facing stiff competition by larger studio conglomerates, like Disney, Amazon and of course, Netflix. The acquisition of Warner Bros. would solidify Paramount / Skydance as a persistent player in the Hollywood game, at least for some time. Netflix’s acquisition could very well be the beginning of the end for the rival studio and many analysts forsee the merger eventually leading to Paramount's demise. Stakes are higher for Paramount and its evident by how aggressive they're pursuing this merger.

What happens now?

Paramount are now going directly to Warner Bros. Discovery shareholders with their offer in hopes they can sway a majority. Until they're able to do so, Netflix’s deal moves forward through the regulatory process as planned. The next 2 weeks will be very telling.