Paramount Skydance escalates the battle for WBD, bypassing the board and making a $30-per-share cash bid directly to shareholders, surpassing Netflix’s $27.75 cash-and-stock offer.
Paramount has serious firepower behind it, with $24 billion in debt and financing from sovereign wealth funds in Saudi Arabia, Qatar, and Abu Dhabi, as well as from Jared Kushner’s Affinity Partners. This high-stakes backing underscores the deal’s global significance.
Paramount CEO David Ellison expressed frustration with the board’s silence: “We submitted our fully financed, superior offer… and not a single call back,” he told investors. Seeking transparency, Paramount appealed directly to shareholders.
For Gulf investors, the bid is a strategic financial move. Firms like the UAE’s L’imad Holding Co. are providing capital but taking no governance role. Paramount has not elaborated on this hands-off approach, leaving analysts to speculate that the focus is purely on financial returns.
Regulatory considerations loom large. Paramount frames its bid as “pro-competitive,” contrasting with a potential Netflix-WBD merger, which could face lengthy antitrust scrutiny. Netflix and HBO Max would control roughly 43% of global SVOD subscribers, potentially delaying approval by more than 6 months.
Adding to the political drama, incoming President Donald Trump flagged concerns about market share and signaled involvement in the approval process.
Paramount also touts a cinematic edge. Unlike Netflix, it pledges to preserve theatrical windows, releasing 30 films annually. “Movies are among America’s greatest exports… This deal builds more, not less,” Ellison said.
The tender offer is open for 20 business days, making WBD shareholders central to a decision that could reshape global media. With MENA funds fuelling the bid and competition with Netflix, this has become one of Hollywood’s most high-profile battles.
