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business5h ago
Paramount goes hostile in bid for Warner Bros., challenging a $72 billion offer by Netflix
- Paramount launches a hostile takeover bid for Warner Bros. Discovery, challenging Netflix’s offer.
- Paramount offers about $74.4 billion with more cash than Netflix, aiming to win shareholder support.
- Warner Bros. Discovery leadership had not meaningfully engaged with Paramount’s prior bids.
- The deal includes Warner’s cable operations being part of the potential purchase, which Netflix reportedly does not want.
- Analysts note the timing follows Warner’s separation of its cable assets and could reshape the industry.
- Regulators and politicians are watching the fight due to potential impacts on prices and entertainment options.
- Paramount CEO David Ellison frames the deal as benefiting creativity, consumers, and theaters.
- Netflix and Paramount are positioned for a high-stakes, potentially protracted battle.
- Market reaction showed Warner shares up while Netflix declined on the news.
- The exchange includes a tender offer and potential closing within 12 to 18 months.
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