Paramount Versus Netflix: The Hollywood Studio Bidding War Heats Up

In a blockbuster move, Warner Bros Discovery has deemed Paramount's $31-a-share offer superior to its ongoing arrangement with Netflix, reigniting the high-stakes battle for Hollywood's coveted Warner Bros studio. Netflix, which had previously granted a waiver to explore offers, now faces a four-business-day deadline to respond or step aside.

The competition reached a critical point when Paramount raised its earlier bid, promising higher value and quicker closure for Warner Bros shareholders. Netflix initially proposed a $27.75-a-share deal, eyeing substantial shareholder returns through a Warner Bros cable assets spinoff.

Financing details underscore the ambition behind the bids. Larry Ellison's Ellison Trust is backing $45.7 billion in equity for Paramount, which also secured $57.5 billion in debt financing commitments. With $9.03 billion in cash, Netflix holds ample financial power to counter the offer. The outcome could reshape Hollywood's landscape, granting ownership of Warner Bros' remarkable content library and franchise rights.