Paramount Calls Netflix Bid for Warner Bros Discovery Inferior, Flags Cable Assets as “Near-Valueless”

Paramount Skydance has reiterated that its $108.4 billion bid for Warner Bros Discovery (WBD) offers superior value compared with Netflix’s competing proposal, arguing that the cable network spinoff central to Netflix’s offer holds little to no meaningful equity value.

The company is vying with Netflix to acquire Warner Bros’ film and television studios along with its extensive content library, which includes major franchises such as Harry Potter and DC Comics.

All-cash certainty versus mixed financing

Paramount said its all-cash offer of $30 per share for the entire company provides greater certainty for shareholders and presents a clearer regulatory pathway than Netflix’s cash-and-stock proposal of $27.75 per share. Netflix’s bid values the transaction at approximately $82.7 billion and excludes WBD’s cable networks.

According to Paramount, the cable assets, including CNN and Discovery, could carry minimal or even zero equity value. The company pointed to the recent market performance of Comcast’s cable spinoff, Versant Media, as a comparable example to support its assessment.

Debt concerns raised over Netflix offer

Paramount also warned that the structure of Netflix’s proposal could dilute shareholder returns if additional debt is incorporated into the deal, potentially lowering the final per-share payout.

Netflix, however, has maintained that its proposal represents the strongest option for shareholders and said the offer is backed by committed bank financing.

Warner Bros Discovery questions Paramount’s bid

Paramount’s tender offer is due to expire on January 21, subject to extension. Warner Bros Discovery has stated that Paramount’s revised proposal remains insufficient, citing concerns around execution risk, high leverage levels, and potential financial costs to shareholders if the transaction does not close.

The company has also highlighted that ending its existing agreement with Netflix would trigger substantial breakup fees.

Regulators likely to scrutinise both deals

Industry analysts expect either transaction to face close examination from regulators in the United States and Europe, with lawmakers and competition authorities assessing the implications of further consolidation in the global media and entertainment sector.