Paramount reiterates its bid is superior to Netflix’s offer for Warner Bros Discovery

Paramount Skydance has reiterated that its $108.4 billion bid for Warner Bros Discovery (WBD) is superior to the competing proposal from Netflix, arguing that the value of the cable spinoff central to Netflix’s offer is effectively negligible.

Paramount is competing with Netflix to acquire Warner Bros’ film and television studios and its content library, which includes franchises such as Harry Potter and DC Comics.

Paramount maintains that its all-cash offer of $30 per share for the entire company offers greater certainty and a clearer regulatory path than Netflix’s $27.75-per-share cash-and-stock deal, which values the transaction at $82.7 billion and excludes WBD’s cable networks. According to Paramount, the cable assets, including CNN and Discovery, could have little to no equity value, citing the recent market performance of Comcast spinoff Versant Media as a comparable.

The company also argued that Netflix’s proposal could reduce the cash payout to WBD shareholders if additional debt is added to the transaction, potentially lowering the per-share value. Netflix has reiterated that its offer represents the best value for shareholders and is supported by committed bank financing.

Paramount’s tender offer is set to expire on January 21, subject to extension. WBD has maintained that Paramount’s revised bid remains inadequate, citing execution risk, high leverage, and the potential costs to shareholders if the deal fails. The company has also highlighted that terminating its agreement with Netflix would trigger significant breakup fees.

Both potential transactions are expected to face regulatory scrutiny in the U.S. and Europe, as lawmakers and regulators assess the impact of further consolidation in the media industry.