"Having presumably choked on splashy " Netflix buys Warner Bros.!" headlines all weekend, Paramount Skydance battled back Monday morning with news of its own: The David Ellison-led company is launching a hostile takeover bid for Warner Bros. Discovery. "We're really here to finish what we started," Ellison told CNBC. Having lost the initial bidding war to CEO Ted Sarandos at Netflix, Ellison will appeal directly to WBD's shareholders with the exact same offer the company's board rejected last week."
"Ellison's offer, which totals $108.4 billion and which he will now put in front of WBD's individual shareholders, is to buy all that plus WBD's cable networks, a shrinking but still significant business that includes CNN, TNT, TBS, and several other networks. But the deal must still pass regulatory approval. If you're new to hostile takeovers, Disney Ellison is deploying something called the "tender offer" strategy."
Paramount Skydance, led by David Ellison, initiated a hostile takeover bid aimed at Warner Bros. Discovery by launching a tender offer directly to shareholders. Netflix previously secured a board-approved $82.7 billion deal for a streaming-and-studios carve-out including HBO, HBO Max, and major IP. Ellison proposes a larger $108.4 billion bid that would add WBD's cable networks such as CNN, TNT and TBS. The tender offer could succeed if a majority of shareholders vote against the board recommendation. The transaction still faces regulatory approval and involves a reported $2.8 billion break-up fee.
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