Unions and industry organizations are mobilizing to oppose Netflix's proposed acquisition of Warner Bros. and HBO, amid a rival all-cash bid from Paramount Skydance. Paramount argues that Warner Bros. Discovery is overvaluing its traditional TV networks, making the Netflix deal less favorable for shareholders. The corporate battle highlights tensions in the shifting entertainment landscape.
Overview of the Proposed Deals
Netflix has agreed to acquire Warner Bros. Discovery's (WBD) TV and film studios, HBO, HBO Max, and games division for $27.75 per share, with 84% in cash, valuing that portion at $72 billion in equity. This deal excludes WBD's linear TV networks, such as CNN, TBS, TNT, Discovery Channel, HGTV, and others, which are set to be spun off into a separate entity called Discovery Global by the third quarter of 2026. Under the agreement, Netflix would assume $10.7 billion of WBD's debt, leaving the spun-off networks with a significant portion of the company's $34.5 billion gross debt load.
In contrast, Paramount Skydance has launched a hostile takeover bid offering $30 per share in all cash for the entire WBD, including the TV networks, with an equity value of $77.9 billion. Paramount contends that WBD is inflating the value of its TV networks to justify rejecting their offer in favor of Netflix's. According to Paramount's calculations, the networks are worth only about $1 per share, or $2.6 billion in equity, based on a 4.5x forward EBITDA multiple and a 3.5x net debt-to-EBITDA ratio—lower than comparable assets like Comcast's planned Versant spin-off.
"Even after assigning value to the global network stub, total value to WBD shareholders in the Netflix deal does not exceed $30 per share, and ours is in 100% cash," said David Ellison, Paramount's leader, during an investor call. Paramount's chief strategy officer Andy Gordon added that the Netflix proposal leaves shareholders with a "highly levered declining global network stub, creating value uncertainty."
Industry Opposition
On the 'Daily Variety' podcast, Variety's Gene Maddaus highlighted how unions and industry groups have assembled to fight the Netflix-WBD deal, citing concerns over its impact on the entertainment sector. WBD announced its separation plans in June 2025, aiming to streamline its streaming and studios business under CEO David Zaslav while isolating the declining linear TV operations led by CFO Gunnar Wiedenfels. Discovery Global would include international free-to-air channels, TNT Sports, Discovery+, and Bleacher Report.
Paramount sees potential synergies in acquiring the full WBD, particularly by integrating the TV networks with its own linear business. "One of the reasons why we are so interested in [the Warner Bros. Discovery television business] and want to acquire it is because when you put together with our linear business, there are significant synergies," Ellison noted. WBD has not commented on Paramount's valuation claims.