Paramount pushes back tender offer deadline in an effort to attract Warner shareholders amid intensifying proxy battle

Paramount Pictures Studio, Los Angeles

Photo taken at Paramount Pictures Studio in Los Angeles, CA, on Friday, June 6, 2025. (Myung J. Chun / Los Angeles Times)

Paramount’s Pursuit of Warner Bros. Discovery Intensifies

David Ellison remains determined to establish a new powerhouse in Hollywood. On Thursday, Paramount, under Ellison’s leadership, announced via a regulatory filing that it would extend the deadline for its offer to purchase shares of Warner Bros. Discovery. Previously, Warner shareholders were asked to sell their shares to Paramount for $30 each by Wednesday.

The revised deadline for this tender offer is now set for February 20.

In addition, Paramount submitted proxy materials to the Securities & Exchange Commission, indicating its intention to contest a competing bid from Netflix at an upcoming special meeting of Warner shareholders. While the date for this meeting has yet to be determined, Warner’s board has suggested that the crucial vote could take place by April, extending the contest for control of the company into the spring.

On December 4, Warner’s board unanimously agreed to sell a significant portion of the company to Netflix at $27.75 per share. However, before this transaction can proceed, Warner must separate CNN and other basic cable networks into a new publicly traded entity named Discovery Global.

This multi-stage process provides Paramount with ample time to present its case to Warner shareholders.

Paramount Challenges Netflix’s Offer

Paramount stated on Thursday that the compensation offered to Warner Bros. Discovery shareholders in the Netflix deal is significantly less than Paramount’s all-cash proposal of $30 per share.

Since August, billionaire Larry Ellison and his family have taken the reins at Paramount, aiming to become influential figures in the entertainment industry.

In September, the Ellisons launched an ambitious campaign to acquire Warner Bros. Discovery, seeking to merge two historic film studios and combine their robust television production assets, along with popular networks such as HBO, CBS, Comedy Central, HGTV, and TBS.

After failing to persuade Warner’s board, which continues to back Netflix’s $72 billion offer for HBO, HBO Max, and the Warner Bros. film and TV studios, Paramount initiated a hostile takeover attempt last month.

Earlier this week, Netflix revised its $27.75 per share bid to an all-cash offer, aiming to address some of Paramount’s criticisms.

Paramount has emphasized the regulatory uncertainties facing Netflix’s proposal, with both companies preparing to present their arguments to European authorities.

Unlike Netflix, Paramount’s bid includes the acquisition of all of Warner Bros. Discovery, encompassing CNN and other cable channels. The valuation of the new Discovery Global company will influence the final amount shareholders receive if Netflix’s offer is accepted.

Updates and Additional Resources

The spinoff of Warner’s cable channels is anticipated to conclude this summer, but questions remain about their value. This uncertainty strengthens Paramount’s argument that its $30-per-share offer for the entire company is more attractive than Netflix’s $27.75-per-share bid for Warner’s studios and HBO.