Bid battle remains unresolved
Paramount said it is not raising its takeover bid for Warner Bros. Discovery above $30 per share for now, responding on Thursday to the latest rejection from WBD’s board. The media group reiterated its view that shareholders should back its hostile offer despite continued resistance from Warner Bros. Discovery.
In a statement, Paramount said its proposal offers greater value than WBD’s existing agreement with Netflix and represents the best available option for shareholders. The dispute centers on control of high-profile assets including HBO and Warner Bros., as both sides continue to exchange public statements.
Competing strategies for shareholder value
Market analysts have suggested Paramount may eventually increase its offer above $30 per share to secure shareholder support. At present, however, Warner Bros. Discovery maintains that its agreement with Netflix is the superior path forward. That deal involves the sale of Warner Bros. and HBO, while excluding CNN and other cable assets.
Paramount is urging WBD shareholders to disregard the board’s recommendation and tender their shares at the current $30 cash offer. Warner Bros. Discovery rejected the proposal earlier this week, describing it as inadequate and comparable to a risky leveraged buyout.
WBD said Paramount’s plan carries a higher risk of failure than the certainty offered by the Netflix transaction. Paramount chief executive David Ellison countered that the offer delivers greater value and a clearer, faster route to completion.
Cable assets at the center of the dispute
A key point of disagreement is the valuation of WBD’s cable networks, including CNN, which are not part of the Netflix deal. These assets are expected to be spun off into a new publicly traded company, Discovery Global, later this year.
Warner Bros. Discovery has argued that Discovery Global will hold meaningful standalone value. Paramount has taken a sharply different view, previously assigning a value of $1 per share and now placing a zero value on the cable assets.
Paramount cited weak recent market performance by Versant, Comcast’s newly spun-off cable business, whose shares have fallen roughly 30% since their debut. Executives at Versant have said they expect initial selling pressure to ease over time.
Potential next moves
While Paramount has not increased its offer, it has not ruled out doing so in the coming weeks. For now, analysts note that Netflix retains the signed agreement and regulatory pathway, giving it a clear advantage.
However, observers say the standoff could escalate further if Paramount decides to return with a higher bid aimed at decisively winning shareholder support.
