In a market of rising and falling bids, the WBD deal has entered a more decisive phase.
The sale of Warner Bros. Discovery has been lingering long enough that every media personnel talks about it, even at dinner tables. Earlier, Netflix almost won the deal to acquire WBD’s streaming and studio operations at $27.75 per share through a mix of cash and stock, i.e., the total value at roughly $82.7 billion. A well-structured deal, until…
Paramount made a retaliation with a hostile bid!
Paramount, targeting the entire WBD, countered with a $30-per-share, i.e., approximately $108.4 billion. On paper, it was the richer offer WBD could get.
But, after a fortnight, citing concerns over financing certainty and execution risk, WBD’s board rejected it. Reasons:
- Paramount’s reliance on financing structures tied to a revocable family trust controlled by Oracle co-founder Larry Ellison
- Although it was huge, it lacked guarantees and transparency
- Netflix’s offer, on the other hand, came with defined commitments, contractual protections, and penalties designed to ensure follow-through. They were not there to impress, but to win the deal with the show of certainty
Again, Netflix almost won the deal, but then the world’s third-richest person steps in
Larry Ellison agreed to personally guarantee $40.4 billion in equity financing to back Paramount Skydance’s bid for WBD, covering potential damages, and a commitment not to revoke or materially alter the underlying trust assets during the transaction. Larry’s guarantee turns Paramount’s offer into a commitment that banks, regulators, and the WBD board can rely on. The world’s third-richest person’s guarantee does not end the war; it has just raised the cost of certainty.
A Paramount–WBD merger would consolidate film, television, cable, and news assets into a single cultural and commercial force.
Shareholders are asked to weigh premium valuation against procedural certainty. The timeline may stretch into 2026, and it seems whoever wins the deal they’ll reshape the global media industry.
Pic Credits: Forbes via Google
