Paramount Skydance Extends Deadline for Acquisition Bid for Warner Bros. Discovery
David Ellison, the head of Paramount Skydance, is putting up a fight to win support from Warner Bros. Discovery shareholders for his company’s rival acquisition bid for the entire entertainment conglomerate. Despite the ongoing battle, the Ellisons have not shown any indication of increasing their cash offer in the merger and acquisition (M&A) showdown.
In a recent development, Paramount Skydance announced an extension of the deadline for its all-cash offer of $30 per share for Warner Bros. Discovery until February 20. This move comes after Paramount’s initial tender offer expired on January 21. The company has also filed preliminary proxy materials with the Securities and Exchange Commission (SEC) to persuade Warner Bros. Discovery shareholders to vote against the amended deal with Netflix at the upcoming special meeting in April.
Paramount Skydance reiterated its commitment to acquiring Warner Bros. Discovery at an enterprise value of $108.4 billion, highlighting that their offer surpasses the purported $82.7 billion enterprise value of Netflix’s transaction. The company urges WBD shareholders to express their preference for Paramount’s superior proposal by tendering their shares promptly.
In response, Netflix recently enhanced its $83 billion deal to purchase Warner Bros. Discovery’s TV and film studios along with the HBO Max streaming service by transitioning to an all-cash agreement. Despite Paramount’s persistent efforts, Warner Bros. Discovery’s board has repeatedly turned down their acquisition attempts on eight occasions, opting instead to endorse Netflix’s offer.
Netflix’s decision to switch to an all-cash deal was a strategic move to counter Paramount’s argument that their $30 per share offer was more favorable for WBD shareholders due to its cash nature. Both Netflix and Warner Bros. Discovery anticipate closing the deal within 12-18 months after signing the initial agreement on December 4, 2025, subject to regulatory approvals and shareholder consent. Furthermore, Netflix’s acquisition of Warner Bros. is slated to conclude following Warner Bros. Discovery’s planned spin-off of Discovery Global in the third quarter, encompassing prominent cable networks and streaming services.
