Paramount is at war with Netflix over Warner Bros.’ Discovery with a hostile bid of $108.4 billion

Paramount Skydance on Monday launched a hostile $108.4 billion bid for Warner Bros. Entertainment. Discovery (WBD), days after Warner agreed to be acquired by Netflix for $82.7 billion.

Paramount is going directly to WBD shareholders with an all-cash offer of $30 per share, and noted that its offer provides shareholders with $18 billion more in cash than the Netflix deal, which offered $23.25 in cash and $4.50 in Netflix stock for a total of $27.75 per share.

Paramount is making an offer to buy out WBD outright, while Netflix’s deal with the company only includes the Hollywood studios and streaming business.

These are the same terms offered by Paramount that were rejected by WBD’s board of directors a week ago, CNBC reported Monday.

“We believe WBD’s board is pursuing a lower-quality proposal that exposes shareholders to a mix of cash and stock, an uncertain future trading value for Global Networks’ linear cable business and a difficult regulatory approval process,” Paramount CEO David Ellison said in a statement.

Paramount’s bid is backed by equity financing from the Ellison family and private equity firm Red Bird Capital, as well as $54 billion in debt commitments from Bank of America, Citi and Apollo.

Netflix came out on top on Friday after winning a bidding war against Paramount and Comcast, but Paramount’s hostile bid is sure to continue in the battle for one of Hollywood’s most iconic studios, a battle that has already dragged on for months.

The proposed Netflix deal has already raised antitrust questions, as it would combine two of the most popular streaming platforms into one. Additionally, President Donald Trump said the deal “could be problematic” due to the size of the combined companies’ market shares.

The deal between WBD and Paramount is also likely to raise similar concerns.

Netflix agreed to pay US$5.8 billion if the deal doesn’t go through. WBD will have to pay Netflix $2.8 billion if it decides to cancel the deal.

Netflix did not immediately respond to a request for comment.