The Huge Sum with Which Paramount Won the Bid Against Netflix for Warner Bros Discovery
After five months of intense negotiations and a bidding war that kept Wall Street on edge, Paramount Skydance managed to prevail over Netflix and closed the acquisition of Warner Bros Discovery for 110 billion dollars, including debt.
TL;DR
- Paramount Skydance acquired Warner Bros Discovery for $110 billion, including debt.
- The deal values Warner Bros Discovery's equity at $81 billion, with a cash payment of $31 per share.
- The new entity will combine brands such as CNN, CBS, HBO, Nickelodeon, Harry Potter, Game of Thrones, and DC Universe.
- It will also merge streaming platforms HBO Max and Paramount+.
- David Ellison will lead the new giant, with financial backing from his father, Larry Ellison.
- The acquisition faces regulatory hurdles in Europe and the US.
- Potential national security reviews may arise due to funding from Saudi Arabia, Qatar, and Abu Dhabi.
- Paramount has included a $7 billion termination fee and assumed $2.8 billion in payments Warner Bros Discovery owes to Netflix.