Paramount's $31 Per Share Bid Gains Serious Consideration from Warner Bros. Discovery Board
After enduring weeks of rejection and a prolonged wait of 75 days, David Ellison's Paramount Skydance has finally submitted a bid that Warner Bros. Discovery's board is taking seriously. According to a detailed report by Business Insider, WBD has informed its shareholders that Paramount's latest offer of $31 per share could reasonably be expected to lead to a superior proposal compared to the existing Netflix deal.
This development marks the first instance in over two months that Paramount has received encouraging feedback from Warner's board, following ten prior unsuccessful attempts. For context, Netflix previously made an offer of $27.75 per share for WBD's streaming and studio assets, which notably includes the prestigious HBO brand.
Netflix's Four-Day Ultimatum and the Battle for HBO
Should Warner's board ultimately determine that Paramount's bid is superior, Netflix will face a critical four-day window to enhance its offer or risk losing the opportunity to acquire HBO. Industry analysts widely regard HBO as the cornerstone of Netflix's ambitious Hollywood expansion strategy, making this potential acquisition particularly significant.
Why Paramount's Latest Offer Stands Out
Warner Bros. Discovery had previously dismissed Paramount's earlier bids due to concerns regarding financing arrangements and potential breakup fees. However, Paramount has strategically addressed these issues in its latest proposal. The company secured a substantial financial guarantee from billionaire Larry Ellison and agreed to reimburse Warner's payout obligations to Netflix if the board decides to switch deals.
This crucial financial assurance has effectively patched the credibility gaps that previously undermined Paramount's position. Meanwhile, Netflix has positioned its deal as simpler and more beneficial for preserving Hollywood jobs, while Paramount has promised approximately $6 billion in operational savings if it emerges victorious.
Warner's board now faces the complex task of weighing these competing corporate visions, while also considering significant regulatory uncertainties both within the United States and internationally.
Political Controversy Enters Corporate Bidding War
Meanwhile, the high-stakes corporate bidding war took an unexpected political turn over the weekend as former President Donald Trump utilized his Truth Social platform to demand that Netflix immediately terminate board member Susan Rice, who served as National Security Adviser under President Barack Obama.
"Netflix should fire racist, Trump Deranged Susan Rice, IMMEDIATELY, or pay the consequences," Trump declared, echoing arguments made by influencer Laura Loomer. Loomer had previously contended that a potential Netflix-Warner Bros. merger would create what she described as a "WOKE streaming monopoly."
Trump further emphasized his position by stating: "HER POWER IS GONE, AND WILL NEVER BE BACK. How much is she being paid, and for what???"
Susan Rice's Controversial Comments
The controversy stems from comments Rice made during a recent podcast appearance, where she suggested that companies cooperating with the Trump administration might face "subpoenas" and "accountability" measures if Democrats regain political power.
"It would not end well. They are going to be caught with more than their pants down," Rice remarked during the podcast. She predicted that Democrats would implement what she termed "an accountability agenda" and advised corporations to "preserve their documents" and "be ready for subpoenas."
Rice elaborated further: "If these corporations think that Democrats, when they come back in power, are going to play by the old rules... I think they've got another thing coming."
Loomer subsequently questioned whether Netflix stands by a board member who she claims is "threatening half of the country with weaponized government and political retribution."
The convergence of corporate acquisition strategies with political controversy adds an unprecedented layer of complexity to what was already one of the most significant media industry battles in recent memory.
