Paramount-Skydance Pursues Warner Bros Discovery Amidst Competing Bids and Legal Settlements
Paramount-Skydance is pursuing a hostile $108 billion bid for Warner Bros Discovery, acquiring CNN. A Trump lawsuit settlement raises conflict of interest concerns.
Overview
Paramount-Skydance is making a hostile bid for Warner Bros Discovery, with a potential 10% increase in their takeover offer, indicating aggressive pursuit of the media giant.
Paramount's bid for Warner Bros Discovery is valued at $108 billion, significantly higher than Netflix's earlier $82.7 billion offer for Warner Bros.
Before its merger with Skydance, Paramount settled a lawsuit with Trump regarding an interview with Kamala Harris, a notable pre-merger event.
This settlement sparked concerns over potential conflicts of interest, given its proximity to Paramount's major corporate merger and acquisition activities.
The Paramount-Skydance merger was approved weeks later, and the comprehensive deal notably included the acquisition of CNN as part of the transaction.
Analysis
Center-leaning sources frame the Netflix/Paramount merger bids as a free speech concern, where media companies may pander to Trump due to federal antitrust power. They emphasize how government oversight, particularly from "progressive proponents," creates an environment where political influence dictates business decisions, advocating for significantly limiting or eliminating antitrust regulators to protect corporate autonomy.
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FAQ
Paramount-Skydance launched a hostile takeover bid on December 8, 2025, offering $30 per share in cash, valuing Warner Bros Discovery at approximately $108.4 billion, which is about $18 billion more in cash than Netflix's competing $82.7 billion offer. The bid is backed by various investors and aims to create a stronger vertically integrated media competitor, potentially closing in 10 to 12 months.
Paramount-Skydance's offer of $108.4 billion is higher than Netflix's earlier $82.7 billion offer. Paramount claims its all-cash bid provides $18 billion more than Netflix's offer and proposes a faster deal closure of 10 to 12 months versus Netflix’s estimated 12 to 18 months.
Before its merger with Skydance, Paramount settled a lawsuit with Donald Trump related to an interview with Kamala Harris. This recent settlement raised concerns about potential conflicts of interest given its timing close to the major corporate merger and acquisition activities involving Paramount-Skydance.
As part of the Paramount-Skydance merger and acquisition activities, CNN was included in the comprehensive deal, indicating that Paramount-Skydance is acquiring CNN along with Warner Bros Discovery's other assets in their pursuit of expanding their media portfolio.
Warner Bros Discovery's board stated it would carefully review Paramount-Skydance's offer in accordance with its fiduciary duties and the existing agreement with Netflix. The board plans to advise its shareholders regarding its recommendation on Paramount’s offer within 10 business days of the announcement.
History
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