Paramount extends tender offer deadline to woo Warner shareholders as proxy fight heats up

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David Ellison is not abandoning his quest to build a new Hollywood juggernaut.

I just saw that Paramount, led by Shari Redstone and the Ellison family, filed a notice saying they’re giving Warner Bros. Discovery shareholders more time to accept their offer. They were originally asking shareholders to sell their shares for $30 each, with Wednesday being the deadline, but now that’s been pushed back.

The new deadline is Feb. 20.

Paramount has submitted documents to the Securities & Exchange Commission stating it will oppose Netflix’s competing offer during a shareholder meeting to decide whether to sell Warner. While Warner’s board hasn’t scheduled the meeting yet, they anticipate it happening by April, meaning the fight for control of the company will likely continue into the spring.

On December 4th, Warner’s board of directors unanimously agreed to sell a large part of the company to Netflix for $27.75 per share. However, before the sale can be finalized, Warner needs to separate CNN and its other basic cable channels into a new, independent company called Discovery Global, which will be publicly traded.

The multi-step process is giving Paramount a wide window to make its case to Warner shareholders.

Hollywood Inc.

Netflix is reportedly interested in acquiring Warner Bros. and HBO, but Paramount Global is also making a competing offer, even an unwelcome one. Here’s a look at how things have unfolded so far.

As a Paramount supporter, I was really glad to see them publicly state that the deal Netflix is offering Warner Bros. Discovery shareholders just doesn’t measure up to their own all-cash offer of $30 a share. It’s clear Paramount believes their offer is significantly better for WBD shareholders.

In August, billionaire Larry Ellison and his family gained control of Paramount, aiming to establish themselves as significant figures in the Hollywood film industry.

The next month, the Ellisons launched a bold attempt to acquire Warner Bros. Discovery. They aim to merge two historic film studios with strong television production businesses, bringing together well-known networks like HBO, CBS, Comedy Central, HGTV, and TBS.

Last month, Paramount made an unwanted offer to buy Warner after talks with Warner’s leadership failed. Warner’s board continues to favor Netflix’s existing $72 billion deal to acquire HBO, HBO Max, and Warner Bros.’ film and TV assets.

Netflix recently changed its offer for Paramount, switching from a mix of stock and cash to a completely cash-based deal of $27.75 per share. This change was intended to address some of Paramount’s concerns about the original offer.

Paramount has repeatedly pointed out that it’s unclear how regulators will treat Netflix. Both companies intend to present their arguments to European authorities.

Paramount+ is considering a full takeover of Warner Bros. Discovery – including CNN and its cable networks – which is different from Netflix’s approach. The potential value of the combined company, tentatively named Discovery Global, would affect how much money Netflix shareholders would ultimately receive if their offer is accepted.

Hollywood Inc.

Once James Gorman left Morgan Stanley after his career there, he was looking for a significant new undertaking. That opportunity came in the form of leading the search for Disney’s next CEO.

The separation of the cable channels is planned for this summer. However, questions about their actual worth give Paramount a strong argument that its offer of $30 per share to buy the whole company was better than Netflix’s $27.75 per share offer for Warner’s studios and HBO.

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2026-01-22 17:02