California media companies, Netflix and Warner Bros Discovery were approved for a merger last week, but the fight turned hostile on Dec. 8 when Paramount Skydance announced a move to stay in the fight, but what is a hostile takeover?
Hollywood-based Paramount Skydance announced that it had not given up trying to acquire Burbank-based Warner Bros. Discovery from under Netflix, aiming to outbid the online streamer for $108.4 billion.
Netflix won its bid for the established media giant that owns studios with such properties as “Batman”, “Game of Thrones” and “Harry Potter” for $72 billion. The merger was announced on Dec. 5.
Here’s what you need to know about the latest in the multibillion-dollar deal.
A hostile takeover is “a proposed acquisition without the approval or consent of the target company,” according to the Corporate Financial Institute.
Paramount Skydance aims to acquire Warner Bros. Discovery by going around the company’s board and management and straight to the shareholders.
The company is appealing to the shareholders by offering about $30 per share, beating out Netflix’s bid by under $30 billion. Hostile takeovers are not uncommon, with a recent famous example being Elon Musk’s acquisition of Twitter.
Santa Clara County-native David Ellison, the son of Oracle founder Larry Ellison, owned Skydance before its recent merger with Paramount, becoming Paramount Skydance.
The Ellisons would potentially own or control a large swathe of media properties, both online and in traditional media, including Oracle’s stake in TikTok and Paramount’s ownership of established television and movie studios.
Paramount Skydance already owns a large library of content, including television networks such as Nickelodeon, MTV and Comedy Central, but the merger would bring even more established TV studios under its belt.
The potential acquisition of CNN has stirred controversy, as the media giant already owns CBS, bringing two major news networks under its control.
Portfolio of brands and TV networks owned by Warner Bros. Discovery includes:
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Adult Swim
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CNN
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Discovery
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Discovery+
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Food Network
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HGTV
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TBS
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TLC
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TNT
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Turner Classic Movies
Ernesto Centeno Araujo covers breaking news for the Ventura County Star. He can be reached at ecentenoaraujo@vcstar.com, 805-437-0224 or @ecentenoaraujo on Instagram and X.
USA TODAY Network contributed to this report.
This article originally appeared on Palm Springs Desert Sun: What is a hostile takeover? Paramount’s bid for Warner Bros.
