Warner Bros. Discovery takeover fight: Paramount’s $30 vs Netflix’s $27.75 per share

The acquisition battle for Warner Bros. Discovery (WBD) has intensified into a high-stakes contest between Netflix and Paramount Skydance, each presenting offers with distinct scopes, structures, and risk profiles. Paramount’s latest move—a hostile, full-company all-cash offer at US$30 per share—purports to deliver substantially greater immediate value to shareholders, including ownership over global networks omitted from Netflix’s offer. Backing from sovereign wealth funds and established banking entities adds financial heft, though these partnerships also attract regulatory scrutiny. [1][3][4]

Netflix, by contrast, remains committed to acquiring the studio and streaming assets (including HBO, HBO Max, Warner Bros studios) for US$27.75 per share in a mix of cash and stock. While its bid excludes WBD’s linear networks, the deal structure arguably reduces regulatory and operational complexity. WBD’s board appears to view Netflix’s proposal as more certain and potentially more deliverable than Paramount’s in both timeline and regulatory risk. [2][4]

From WBD’s perspective, the board is tasked with balancing several dimensions: the premium per share; the completeness of asset inclusion; regulatory execution risk; governance implications, especially concerning foreign investor involvement; and preserving optionality via its planned separation into two companies—Warner Bros and Discovery Global—scheduled for mid-2026. The board has already initiated a review of strategic alternatives, signaling that its decision is not limited to accepting one of the existing bids. [5][2]

Regulatory risk looms large. Paramount’s inclusion of linear networks and its use of foreign backing—despite steps to remove governance control rights—may trigger heightened scrutiny from US and foreign authorities. Netflix’s offer avoids some of that risk by excluding linear networks but still raises antitrust questions given its expanded market position post-deal. The speed and certainty of regulatory paths could ultimately tip the scales despite differences in valuation. [3][4][1]

Open Questions: Will Paramount raise its offer further, given shareholder pressure and WBD’s likely rejection? How will regulatory bodies assess competitive overlap, especially with respect to SVOD dominance, news assets (e.g. CNN), and foreign investment? What valuation discount, if any, WBD accepts for excluding linear networks? And, how will the planned company split impact bidders’ strategies?