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Television

Paramount Skydance Launches Hostile Bid For WBD After Netflix Wins Bidding War (cnbc.com) 66

Paramount Skydance is launching a hostile bid to buy Warner Bros. Discovery after it lost out to Netflix in a months-long bidding war for the legacy assets, the company said Monday. CNBC: Paramount will go straight to WBD shareholders with an all-cash, $30-per-share offer. That's the same bid WBD rejected last week, according to people familiar with the bid who asked not to be named because the details were private. The offer is backstopped with equity financing from the Ellison family and the private-equity firm RedBird Capital and $54 billion of debt commitments from Bank of America, Citi and Apollo Global Management.

"We're really here to finish what we started," Ellison told CNBC's "Squawk on the Street" Monday. "We put the company in play." On Friday, Netflix announced a deal to acquire WBD's studio and streaming assets for $72 billion. David Ellison-run Paramount had been bidding for the entirety of Warner Bros. Discovery, including those assets and the company's TV networks like CNN and TNT Sports.

Paramount Skydance Launches Hostile Bid For WBD After Netflix Wins Bidding War

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  • ...and watch the deep pockets of Netflix duke it out against the politically-favored Paramount+Ellisons.

    Not that we, the movie-enjoying public, will benefit from either side winning. But it may provide interesting entertainment in the meantime.
  • It sounds like WBD rejected the offer for good reason.

    Ellison is offering $72B for everything. Netflix is offering $72B for just studio and streaming assets.

    So Ellison expects to get the whole cable network for free? Why would they even consider that?

    Apparently there was a dispute over the value of their network... but it's surely greater than zero.

    • Re:Is he even sane? (Score:5, Informative)

      by thegarbz ( 1787294 ) on Monday December 08, 2025 @10:36AM (#65843333)

      Where did you get $72bn from? Right in TFA they say $30/share equates to $108.4 billion which is ultimately what Ellison's offer was. I don't think anyone has pretended that the cable part of the business is worth zero. Netflix's bid is $27.75/share

      • Perhaps the board thinks the linear cable assets are worth more than the valuation that Paramount Skydance have given it, and the Netflix deal was accepted because they think they can get more for it as a separate entity?

    • Re:Is he even sane? (Score:5, Informative)

      by mckwant ( 65143 ) on Monday December 08, 2025 @10:53AM (#65843383)

      You're not wrong, but I think your numbers are a little off. NYT Numbers, cite below:

      Netflix - $83B, no cable networks
      Paramount - $108B, networks convey

      Not sure what value I'd put on Discovery, etc., either. Those carriage fees can't be growing, and that $4/mo streamer Roku keeps pitching can't be that big...
      ---
      https://www.nytimes.com/2025/1... [nytimes.com]

      • You're not wrong, but I think your numbers are a little off. NYT Numbers, cite below:

        Netflix - $83B, no cable networks Paramount - $108B, networks convey

        Not sure what value I'd put on Discovery, etc., either.

        The cable network parts were expected to be worth (somewhere) around $16B after the spin-out, which means Netflix's bid is worth (to the shareholders) in the range of $100B (as the shareholders still get the cable network).

        The board will probably need to evaluate the Ellison offer.

      • by Comboman ( 895500 ) on Monday December 08, 2025 @12:47PM (#65843715)

        >>Not sure what value I'd put on Discovery, etc., either. Those carriage fees can't be growing, and that $4/mo streamer Roku keeps pitching can't be that big...

        Ellison/Trump wants CNN so they can turn it into another right-wing propaganda outlet like Fox News. They've already decided which anchors to get rid of. [theguardian.com]

    • Your numbers are wrong.
      Netflix offered $27 and change per share.
      Paramount offered $30 per share. That is about 10% more.

      You need to read the article, not just the summary.

      • by msauve ( 701917 )
        Your numbers are wrong.

        The offers are for different things, so are not directly comparable. Netflix' offer didn't include buying their CATV channels (CNN, Discovery, Turner...), so a comparison requires considering what value those have.

        You need to keep reading.
  • by blahbooboo2 ( 602610 ) on Monday December 08, 2025 @10:19AM (#65843291)

    Ellison wants it so his son can go to premiers and pretend he did something to earn his place in society and not nepotism.

  • Hmmm which do we think the shareholder wants?

    • It's complicated (Score:5, Interesting)

      by ebunga ( 95613 ) on Monday December 08, 2025 @12:11PM (#65843593)

      If they want an immediate payout, then the $30 bid is good, but with most of the deal being debt-financed, it's a leveraged buyout. As Paramount-Skydance is still in the reorganization phase of its recent merger, this is the sort of company that will go belly-up quick through mismanagement. Does nobody remember the weird post-war companies that turned into conglomerates in the 60s and 70s through insane buying sprees that eventually went away in the 90s and early 2000s? Even Paramount itself was at one time owned by one of those weird conglomerates... the Gulf+Western years.

      If the shareholders aren't toddlers and can hold out for two cookies ten minutes from now, they'll choose the Netflix deal.

  • by gtall ( 79522 ) on Monday December 08, 2025 @10:22AM (#65843295)

    Ellison's sprog is an el Bunko favorite, a right-wingnut. So naturally, el Bunko figures he can destroy the Netflix deal and throw the remains to Ellison's sprog, for which there will be a trail of bread crumbs back to his pockets. He never does anything except for himself.

    • by gtall ( 79522 )

      This just in, part of the investment group of Paramount/Skydance is......ta da.....Jared Kushner, who is backed by the Arab Gulf regimes. So el Bunko is sticking his dick into the Netflix deal so he can benefit Kushner. And that's not the only property they want, they want CNN as well.

      This would leave major media companies controlled by Arabs. Netflix is an American company. el Bunko will have many avenues for accepting "tribute" for all his "hard" work.

  • by BytePusher ( 209961 ) on Monday December 08, 2025 @10:34AM (#65843331) Homepage
    Sadly, it's about Israel again: https://www.972mag.com/ellison... [972mag.com]

    I wish they could just keep it simple, have defined borders, withdraw to the 1967 borders, live and let live, and stop trying to be the regional hegemon. Most of the world, in including Palestinians begrudgingly, would accept the Israeli state if it wasn't inherently expansionist and if it would allow Palestinians full autonomy within the areas they were forced into(1967 or even 1948).
    • Israel has citizens beyond the borders you're talking about, many who were born there or brought there as children. So withdrawing is not an option. You can argue, reasonably or unreasonably, that's unjust, but you have to deal with the world the way it is, not how you got there. It would create new injustices to undo the changes, not right a wrong.

      It would be wonderful to time travel back to the late 1940s, get Truman to offer Texas as a location for the new Jewish state, and avoid the problem altogether.

      • Israel has been accelerating land theft in Palestinian territory. They arrived there by force, as paramilitary extensions of the state of Israel. They need to leave Palestinian, Lebanese and Syrian territory. It's that simple.
  • by sabbede ( 2678435 ) on Monday December 08, 2025 @10:49AM (#65843373)
    Warner Bros and Paramount are two of the "Big 5" Hollywood studios. New studios are not created very often. You could even argue that there has never been a new major studio, as every one of the current "Big 5" studios were in some way members of the "Big 8" 100 years ago. It's just been companies buying existing studios, like Sony buying Columbia/Tri-star or Disney (just as old as the rest) buying Fox.

    If Netflix were to buy Warner, there would still be a "Big 5". If Paramount buys it, we go to 4. Is that good, bad, meaningless? I don't know.

    • If Netflix were to buy Warner, there would still be a "Big 5". If Paramount buys it, we go to 4. Is that good, bad, meaningless? I don't know.

      (Old) Hollywood is terrified of big tech. They see changes coming that will impact the way the business has operated for many decades. Sort of like some people are terrified of AI (their jobs will change, or be eliminated). Change will happen (no matter who wins the acquisition). Unless you can accurately predict the future it is not possible to know the good, bad, and meaningless changes that will happen (either in Hollywood, or AI, or ...)

      • Well, I suppose we can look at similar instances in the past to make an educated guess. And looking at the history of the film industry, I guess it won't really matter.
  • All because billionaire criminals want to kill off every check on their aristocratic dynasties like CNN and Last Week Tonight, that's obvious. CBS News is already wreckage. Greed and unlimited power doesn't scale because it invariably destroys the planet and represses the populace like it always has.
  • But fsck that family more than Netflix.

  • I'm not particularly alarmed. I figure that most movies will be generated by small studios and indies using AI in the coming years. The big studios spending hundreds of $millions per movie will fall to the wayside. There will be an explosion of creativity as costs go down and the price of failure is reduced.

    • I'm not particularly alarmed. I figure that most movies will be generated by small studios and indies using AI in the coming years. The big studios spending hundreds of $millions per movie will fall to the wayside. There will be an explosion of creativity as costs go down and the price of failure is reduced.

      Bold proclamation, but 25 years ago, Sony publicly predicted on their press tour that CGI would replace actors...it never did. Will AI be integrated into entertainment?...absolutely....will anyone want to see that slop?...I doubt it. Sony was proud of Final Fantasy Spirits Within and back in 2000, I thought it looked really rad...now it looks like a PS4 game. But even in 2000, I knew it wouldn't replace the real thing. I honestly didn't like it very much. It was tolerable, but not an upgrade to live ac

      • You are welcome to your opinion on this of course, but I disagree. Modern AI-generated content is not the same as ancient CGI. Things that were done in the year 2000 don't compare to the state of the art today.

        >> It's doubtful AI will do so much better to put everyone out of business

        In the near future writers will come up with a screenplay and a set of AI agents will generate much of the movie. There will still be human actors, set designers, costumers, etc but there won't be the massively expensive s

        • >> I use Claude daily...it can't write Java with correct syntax reliably

          I use it daily too, and in my experience it can code as well as any human except much faster. Are you using Claude Opus 4.5? If that doesn't work well for you try Gemini 3.

          I use 4.5 daily and it generates code that compiles about 50% of the time. I write a lot of Java lambdas and it inserts semi-colons where commas should be and rarely matches braces correctly. My best guess is it's too stupid to know that and opening parenthesis can occur without a semi-colon, like chained method calls in lambdas.

          Look, if you think "it can code as well as any human except much faster"...then you're drinking the AI kool aid...or you work with the world's shittiest developers. However,

          • Well I'm sorry you aren't have good success with Claude but clearly many people do including myself. I code in JavaScript and Python, Claude is a whiz at that and I get at least 20k lines of professional-level code from it or Gemini 3 per month.

            >> we'll see it in companies actually having success utilizing them

            Maybe its just you.
            '90% of software developers are using AI at work — with 65% "heavily reliant" on it.'
            https://tech.co/news/90-develo... [tech.co]

            >> You'd see a spending spree of existing sof

  • by gabrieltss ( 64078 ) on Monday December 08, 2025 @05:24PM (#65844437)
    Being that Uncle Larry's Oracle has some serious debt problems. What's to say his companies alone don't have debt issues. He wants to do a billions of $'s cash deal for WBD, but can't keep Oracle out of debt? Yeah I don't think he can manage that kind of cash deal. https://economictimes.indiatim... [indiatimes.com]
  • Matt Stoller has had a beat for now well over half a decade on all things anti-monopoly and anti-merger and has blogged about. One of the few that gets on TV that doesn't as far as I can tell have much (if any - though a good chances he owns some de minus, non controlling amount of stocks or retirement funds) of an interest in the companies he talks about. He is not all about peddling a huge payout. Anyways if your looking to dig even deeps than the links in the /. article then there is one more source or i

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