Paramount Makes Sweetheart Deal to Woo Warner Bros Discovery Amid Hostile Takeover Bid
In a bid to win over Warner Bros Discovery, parent company CBS has ramped up its offer for the studio and streaming assets, including a sweetener of $650 million in quarterly "ticking fees" between 2027 and the deal's closure. The additional payment is part of Paramount's latest effort to persuade HBO parent Warner Bros Discovery to reject Netflix's hostile takeover bid.
Paramount Skydance has stuck with its original offer of $30 per share, or $108.4 billion including debt for the entire company, but is willing to throw in more cash to secure the deal. However, analysts claim that this move won't be enough to change Warner Bros Discovery's mind. "The sweetened deal is unlikely to sway WBD away from Netflix and toward Paramount," said Ross Benes of Emarketer.
Conflict-of-interest concerns surrounding Paramount's ties to US President Donald Trump have long been a point of contention, with some questioning the company's commitment to journalism after appointing conservative opinion writer Bari Weiss as lead editor at CBS. The acquisition could potentially harm Warner Bros Discovery in the long term, according to press freedom experts who warn that CNN would be sold to a parent company with a history of selling out journalism.
The deal has drawn scrutiny from regulators and lawmakers on both sides of the aisle. While Democrats have raised concerns about political bias in the Paramount Skydance deal, Republicans have accused Netflix of being biased against conservative views. "Netflix has no political agenda of any kind," co-CEO Ted Sarandos responded to questioning at a Senate hearing.
The fate of Warner Bros Discovery and its assets hangs in the balance as both Paramount Skydance and Netflix continue to vie for control. If successful, the deal would make Netflix the world's largest streaming platform with roughly half a billion subscribers.
In a bid to win over Warner Bros Discovery, parent company CBS has ramped up its offer for the studio and streaming assets, including a sweetener of $650 million in quarterly "ticking fees" between 2027 and the deal's closure. The additional payment is part of Paramount's latest effort to persuade HBO parent Warner Bros Discovery to reject Netflix's hostile takeover bid.
Paramount Skydance has stuck with its original offer of $30 per share, or $108.4 billion including debt for the entire company, but is willing to throw in more cash to secure the deal. However, analysts claim that this move won't be enough to change Warner Bros Discovery's mind. "The sweetened deal is unlikely to sway WBD away from Netflix and toward Paramount," said Ross Benes of Emarketer.
Conflict-of-interest concerns surrounding Paramount's ties to US President Donald Trump have long been a point of contention, with some questioning the company's commitment to journalism after appointing conservative opinion writer Bari Weiss as lead editor at CBS. The acquisition could potentially harm Warner Bros Discovery in the long term, according to press freedom experts who warn that CNN would be sold to a parent company with a history of selling out journalism.
The deal has drawn scrutiny from regulators and lawmakers on both sides of the aisle. While Democrats have raised concerns about political bias in the Paramount Skydance deal, Republicans have accused Netflix of being biased against conservative views. "Netflix has no political agenda of any kind," co-CEO Ted Sarandos responded to questioning at a Senate hearing.
The fate of Warner Bros Discovery and its assets hangs in the balance as both Paramount Skydance and Netflix continue to vie for control. If successful, the deal would make Netflix the world's largest streaming platform with roughly half a billion subscribers.