Tag: Paramount Skydance

Warner Bros. Discovery Rejects Paramount’s Hostile Takeover Offer

The fight over control of Warner Bros. Discovery is heating up, and it could have ripple effects across the entertainment landscape — including All Elite Wrestling.

Warner Bros. Discovery, AEW’s longtime broadcast and streaming partner, has officially rejected a hostile acquisition attempt from the Paramount Skydance group led by David Ellison. The move comes after WBD recently agreed to a major deal with Netflix, which would see the streaming giant acquire a significant portion of WBD’s assets, including Warner Bros. Pictures and HBO Max.

Following that agreement, Paramount launched an aggressive all-cash tender offer directly to WBD shareholders, offering $30 per share and valuing the company at roughly $108 billion. Unlike Netflix’s proposal, Paramount’s bid would include WBD’s entire portfolio, including its linear television networks.

According to The Hollywood Reporter, WBD’s board has now formally rejected Paramount’s offer, telling shareholders it is “inferior” to Netflix’s deal and warning that the bid carries “numerous significant risks and costs.” With that decision made, Paramount’s options are limited: either convince shareholders to sell at the current price or return with a higher offer in hopes of disrupting the Netflix agreement.

WBD Board Chair Samuel A. Di Piazza, Jr. said the rejection followed a comprehensive review of Paramount’s proposal. In a statement, Di Piazza said the board determined the offer undervalued the company while placing unnecessary risk on shareholders. He added that the bid failed to resolve issues WBD had already raised during discussions around Paramount’s six previous proposals.

Di Piazza emphasized that WBD believes the Netflix transaction offers stronger and more certain value, stating the company is confident in the long-term upside of that partnership.

THR noted that the board’s response was widely expected. Paramount’s tender offer closely resembled a proposal submitted earlier in December, shortly before WBD finalized its agreement with Netflix. WBD has repeatedly expressed concerns about Paramount’s financing, particularly questions surrounding foreign investment and whether Oracle founder Larry Ellison would fully guarantee the deal.

In a December 17 filing, WBD specifically pointed to issues with the backstop provided by Ellison’s revocable trust, citing a lack of transparency regarding the trust’s assets and liabilities. The filing also raised red flags about funding tied to Middle East sovereign wealth funds, including $10 billion from Saudi Arabia’s Public Investment Fund, $7 billion from Abu Dhabi, and another $7 billion from the Qatar Investment Authority.

Paramount has already had to adjust its financing structure. Tencent, which was expected to contribute $1 billion, was removed from the bid, while Jared Kushner’s Affinity Partners has reportedly pulled out of a $200 million commitment. WBD has also stated it sees no meaningful regulatory advantage in Paramount’s proposal compared to Netflix’s.

Looking ahead, THR reports that Ellison and his team were waiting on WBD’s response before deciding their next move. If Paramount increases its offer, Netflix would have the opportunity to counter, potentially setting off a full-scale bidding war. Netflix, for its part, sent a letter to shareholders on December 17 calling its proposal “the right deal, with the right partner, at the right time.”

The report also revealed that Ellison texted WBD CEO David Zaslav just hours before the Netflix deal was finalized, signaling Paramount’s willingness to go higher than $30 per share. Notably, Ellison pointed out that the offer was not labeled “best and final.”

Despite the rejection, Paramount reaffirmed its $30 per share tender offer in a statement released today. Ellison reiterated his belief in the deal, arguing it offers superior value, a clearer path to closing, and avoids leaving shareholders with what he described as an overleveraged linear TV business.

Ellison and senior Paramount executives have continued lobbying investors, including at a recent UBS conference in New York. One attendee told THR they left believing Paramount is prepared to raise its bid and questioned whether Netflix could realistically match a higher offer given recent stock movement following the $83 billion announcement.

With several major WBD shareholders reportedly intrigued by Paramount’s all-cash proposal, pressure could continue to mount. If Paramount ups the ante, WBD may yet find itself forced to reconsider — setting the stage for an even bigger showdown in the media world.

Paramount’s Surprise Bid for Warner Bros. Discovery Could Complicate Netflix’s Plans – And AEW’s Future Home

The media war around Warner Bros. Discovery (WBD) just got a lot more chaotic — and the ripple effects could eventually reach AEW.

Over the past week, Netflix had been moving toward a massive $82.7 billion deal that would carve up WBD, taking control of Warner Bros. Studios, HBO, and HBO Max while spinning off the cable networks into a separate company. That deal, while far from finalized, had the potential to shake up WBD’s structure but wasn’t expected to immediately disrupt AEW’s presence on TNT, TBS, or Max.

But now Paramount has stormed into the picture with what several outlets are calling a hostile takeover attempt. The newly formed Paramount Skydance has reportedly put a $108.4 billion offer on the table — translating to $30 per WBD share, surpassing Netflix’s bid of roughly $27.75 per share.

According to Variety and other industry reports, WBD has acknowledged receiving Paramount’s unsolicited proposal and has 10 business days to make a formal decision.

If Netflix’s bid ultimately collapses, the streamer would owe WBD a hefty $5.8 billion breakup fee.

Paramount issued a statement to Deadline, touting its offer as a more stable, less complicated option for WBD shareholders — and taking a not-so-subtle swipe at Netflix’s deal by framing it as riskier and tied to a lengthy regulatory process.

What Does This Mean for AEW?

In the short term, nothing changes. AEW’s existing media rights agreement with WBD runs through 2027, with an option year into 2028, covering TNT, TBS, and Max for Dynamite, Collision, and pay-per-view distribution.

However, the long-term landscape could get messier depending on which company wins out:

  • If Netflix somehow prevails:
    AEW’s content might end up shifting on the streaming side, especially if HBO Max gets restructured or folded into Netflix. But again, this wouldn’t immediately alter their TV homes on TNT/TBS.
  • If Paramount takes over WBD:
    Things get more interesting. Paramount already has a huge deal in place with UFC — a 7-year, $7.7 billion agreement beginning in 2026 — making Paramount+ the exclusive streaming home for UFC. Could Paramount want both UFC and AEW under its umbrella? Would they see AEW as redundant? Or would they look to bolster their sports/entertainment portfolio even more?

There’s no clear answer yet, but it’s a scenario worth watching.

AEW’s Stability vs. a Turbulent Media Market

With Hollywood and the streaming world in full consolidation mode, AEW finds itself tied to a partner that major companies are fighting over. That could either strengthen their position or leave them navigating a new corporate owner with new priorities.

For now, AEW is safe and locked in. But as the Paramount vs. Netflix drama unfolds, Tony Khan’s promotion may once again find its fate linked to boardroom battles far outside the wrestling ring.

Report: Paramount Skydance Preparing Bid For Entirety Of AEW Broadcast Partner WBD

The business side of pro wrestling just got even more complicated. Fresh off completing their merger, Paramount and Skydance are reportedly preparing a massive bid to buy Warner Bros. Discovery — the current broadcast home of AEW.

According to The Wall Street Journal, WBD was already considering breaking the company into pieces, but Paramount’s move would scoop up the whole operation before that could happen. That means if a deal goes through, Paramount wouldn’t just inherit HBO Max and Warner Bros. Studios — they’d also gain control of TNT, TBS, and the entire slate of Turner networks that air AEW programming and pay-per-views.

The ripple effect here for AEW is huge. Paramount already has ties to UFC, which is under the TKO umbrella alongside WWE. If the takeover happens, Paramount may be forced to decide between backing UFC or continuing its relationship with AEW — and history tells us that networks don’t usually double down on competing combat sports brands.

It’s also worth noting that WWE has never been stronger in the media space, with deals spread across Netflix, Peacock, ESPN, and The CW. Meanwhile, AEW just kicked off a fresh rights agreement in January, moving pay-per-view distribution from Bleacher Report to HBO Max, while Amazon Prime picked up regular streaming duties. Their next big test comes September 20 with All Out airing on HBO Max.

Of course, any potential Paramount-WBD merger would face intense scrutiny from the FCC and FTC given the size of the companies involved, so this isn’t something that would happen overnight. But if it does, AEW could find itself at another crossroads in its short but turbulent broadcast history.

One thing’s for sure: just when it seemed like AEW had finally settled its media home, the playing field might be shifting again.