This week, Paramount's CEO David Ellison visited Paris, where he met with French President Emmanuel Macron, as well as with the culture ministers from France and the UK. This trip to European capitals aims to secure support from local politicians and cultural figures, which should help strengthen Paramount's position in negotiations with Warner Bros. shareholders, who previously rejected its proposal.
As part of its strategy, Paramount emphasizes its commitment to the film industry, asserting that it is capable of protecting films from pressure from Netflix. In particular, the company has promised to release at least 30 films per year for theaters and to maintain "healthy traditional release windows."
Starting in 2026, a fierce corporate battle has erupted between Netflix and Paramount for control over Warner Bros. Discovery (WBD). Netflix offered approximately $82.7 billion for the assets, while Paramount, in conjunction with Skydance, made a more generous offer of $108.4 billion, intending to fully acquire the company.
According to reports, Netflix plans to acquire Warner Bros. Discovery's studio and streaming assets for cash, without increasing the deal amount of $82.7 billion. The Warner Bros. board of directors has already approved this offer, while Paramount's proposal to purchase the company for $108 billion was rejected.
As reported by Netflix's press service, the new agreement implies that the deal will be entirely cash-based, which should simplify the deal structure and enhance Warner Bros. shareholders' confidence in its value. The revised offer from Netflix is $27.75 per share, replacing the previous offer that included $23.25 in cash and $4.50 in Netflix stock.
The Warner Bros. board of directors unanimously approved the new offer from Netflix, and a special shareholders' meeting to vote on the deal is scheduled for April.
Previously, the Warner Bros. board rejected Paramount's offer to purchase the company for $108 billion. However, according to portfolio manager at Harris Oakmark, Alex Fitch, the battle for Warner Bros. Discovery continues. He noted that the new terms of the deal demonstrate Netflix's serious intentions, and the expedited shareholder vote puts Paramount in a position where it needs to offer more favorable terms if it wants to seize the deal.
