Paramount-Skydance launches $30-a-share cash tender for Warner Bros. Discovery, setting up Hollywood’s biggest takeover fight
Paramount-Skydance moved directly to Warner Bros. Discovery shareholders with an unsolicited all-cash tender at $30 per share, a bid valuing WBD at roughly $108.4 billion and challenging a rival, Netflix-linked path that it says offers inferior and uncertain value. Early premarket moves show WBD higher, while the broader media complex is firm on renewed M&A hopes.
What Paramount-Skydance is offering
Paramount-Skydance’s bid is structured as a cash tender for 100% of Warner Bros. Discovery, including its global networks unit. The offer is not subject to financing conditions, with equity backstopped by the Ellison family and RedBird Capital, and fully committed debt financing from Bank of America, Citigroup, and Apollo. The bidder said it will file a premerger notification under the Hart-Scott-Rodino Act today, starting the antitrust clock.
Strategic stakes: theaters vs. streaming
David Ellison, Paramount-Skydance’s CEO, framed the move as a reset for Hollywood’s economics in a CNBC appearance, arguing an all-cash deal delivers certainty and preserves theatrical output—targeting 30 films a year—versus what he characterized as a rival plan tied to Netflix that could accelerate the shift away from cinemas. Ellison said he believes President Trump favors market competitiveness and contended his proposal addresses concerns WBD previously raised, adding that the company has yet to respond to the latest approach.
Market reaction and macro read-through
In premarket trading, Warner Bros. Discovery rose about 6.2% to $27.70, Paramount-Skydance gained roughly 5.1% to $14.05, and Netflix was little changed near $100.27. The bid adds momentum to U.S. media M&A and could compress high-yield spreads across the sector if investors gain confidence in financing conditions and deal certainty. For macro traders, the cash-heavy structure and bank underwriting commitments hint at resilient U.S. credit liquidity—typically a modest tailwind for risk assets—while antitrust timing keeps an overhang on timelines for closing.
FX implications are indirect: a robust U.S. deal pipeline can sometimes support USD via capital inflows and underpin U.S. equities, but the regulatory path and any competing bids will dictate whether this becomes a broader risk-on impulse or a sector-specific story. Watch equity vol in U.S. media, bank credit indices, and option pricing in names linked to the streaming-theatrical debate.
Key points
- $30/share all-cash tender for Warner Bros. Discovery, valuing WBD at about $108.4 billion.
- Offer taken directly to shareholders; covers 100% of WBD, including global networks.
- Financing: equity backstopped by the Ellison family and RedBird Capital; debt fully committed by Bank of America, Citi, and Apollo.
- No financing condition; HSR antitrust filing to be submitted today.
- Paramount-Skydance calls a rival Netflix-linked path “inferior and uncertain.”
- Premarket: WBD +6.2% to $27.70, PSKY +5.1% to $14.05, NFLX flat near $100.27.
Why it matters for traders
This is the most forceful move yet in a consolidating media landscape where scale, IP monetization, and distribution control are central. Deal dynamics could stir pair trades across media and streaming, widen valuation dispersion, and influence credit curves for content-heavy balance sheets. Keep an eye on antitrust milestones, competing bids, and any divestiture talk—each can swing deal probabilities and sector beta. As ever, financing clarity is a key volatility valve.
FAQ
What exactly did Paramount-Skydance propose?
An unsolicited, all-cash tender offer of $30 per share to acquire 100% of Warner Bros. Discovery, valuing the company at about $108.4 billion.
Is the financing secured?
Paramount-Skydance says the bid has no financing condition. Equity is backstopped by the Ellison family and RedBird Capital, while Bank of America, Citigroup, and Apollo have provided fully committed debt financing.
Why take the offer directly to shareholders?
Going straight to shareholders via a tender offer is a way to accelerate timelines and apply pressure when the target’s board is unresponsive or prefers an alternative path.
What are the antitrust steps?
The bidder will file under the Hart-Scott-Rodino Act, starting a review period during which regulators assess potential competitive issues. That review can be extended by a second request.
How did markets react initially?
Premarket trading showed WBD up ~6%, Paramount-Skydance up ~5%, and Netflix roughly flat. The sector tone improved on renewed deal optimism.
What’s the argument against the rival Netflix-linked plan?
Paramount-Skydance argues that path offers inferior and uncertain value to WBD holders, while its all-cash proposal delivers certainty and a faster route to closing.
Could this move broader markets?
Yes—if financing remains firm and regulatory risk looks manageable, media M&A could support U.S. credit sentiment and risk appetite. However, antitrust scrutiny and competing bids can inject volatility. As BPayNews notes, watch spreads in media high-yield, bank underwriter exposure, and event-driven flows in related equities.
