Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - Paramount Skydance has officially put a $108.4 billion all-cash offer on the table to acquire Warner Bros. Discovery. This aggressive move is clearly aimed at hijacking the merger deal previously struck by Netflix.
Keytakeaways
- Paramount offers $30 per share in cash, totaling $108.4 billion for all Warner Bros assets.
- Netflix’s $82.7 billion deal is at risk due to monopoly concerns in the US streaming market.
- The Ellison family and RedBird Capital are guaranteeing full equity funding to speed up the acquisition process.
The new bid values the company at $30 per share, payable entirely in cash to shareholders. This figure blows past Netflix’s $82.7 billion proposal, which was a complicated mix of cash and stock.
The market reacted positively, sending Paramount shares up over 9% following the announcement. On the flip side, Netflix stock took a hit, dropping more than 3% during Monday’s trading session.
Financing Strategies and Regulatory Roadblocks
David Ellison is trying to win over the board by simplifying the financing structure that had raised eyebrows before. The Ellison family and RedBird Capital have committed to covering 100% of the required equity, totaling $40.7 billion.
Regulatory filings note that foreign backers, like the Saudi sovereign wealth fund, have agreed to waive governance rights. This move is designed to minimize potential pushback from US regulators regarding foreign investment.
Antitrust concerns are taking center stage, as a Netflix and Warner Bros combo would control a third of the US streaming market. Data from JustWatch highlights a market dominance that could trigger a strict review by the DOJ.
President Trump has even openly flagged the massive market share as a potential headache for regulators. Paramount is seizing this opportunity by offering to acquire the assets whole, avoiding the risk of a messy breakup.
According to Yahoo Finance, David Ellison’s father is the founder and executive chairman of Oracle Corporation. Having a tech titan involved adds serious credibility weight to the funding in Paramount’s latest pitch.
Referensi:
- Yahoo Finance, Ellison's Paramount makes $108B cash offer for Warner Bros. Discovery, escalating buyout fight with Netflix. Accessed on December 9, 2025
- Featured Image: Shutterstock
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