"Cash is King"... Paramount Declares War on Netflix with $108.4 Billion Hostile Takeover

"There is one truth that remains unchanged on Wall Street. That is, cash is king (Cash is King)." David Ellison, CEO of Paramount, threw an astronomical cash bomb of $108.4 billion (approximately 153 trillion won) to overturn the table set by Netflix.

On the 9th (local time), Paramount Skydance officially declared a Hostile Takeover targeting Warner Brothers Discovery (WBD) shareholders. This surprise attack came just days after Netflix contracted to acquire WBD's core assets for $72 billion last Friday.

◆ "Netflix Splits, but We Keep It Together"

CEO Ellison expressed his aggressive intent in an interview with CNBC's "Squawk on the Street," stating, "We have come to finish what we started. We are the ones who made this company a 'play state' (target for acquisition)."

The terms proposed by Paramount are $30 per share, all cash. This is not only higher than Netflix's offer of $27.75 per share but also amounts to $17.6 billion more in total.

Above all, the major difference is in the 'structure'. While Netflix's approach is to 'slice up' by taking Warner Brothers Studio and HBO while spinning off cable channels like CNN, Paramount proposed a buyout, stating that "keeping WBD whole is in the best interest of shareholders."

◆ Oil Money and Trump's Shadow

Behind Paramount's confidence is a powerful financial backing. The Ellison family and RedBird Capital, along with sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, have come to support. Additionally, major Wall Street players like Bank of America (BofA), Citi, and Apollo have guaranteed $54 billion in debt commitments.

Ellison also showed confidence regarding regulatory issues. He hinted at a friendly relationship with the Trump administration, stating, "President Trump is someone who believes in competition," emphasizing the justification as a counterweight to Netflix's monopoly.

◆ The Fateful January 8

The market reacted immediately. On that day, Paramount's stock rose by 9%, while WBD surged by 4%, and the taken-aback Netflix fell by 3%.

Paramount's public buyout offer will expire on January 8, 2026. WBD shareholders will engage in a fierce game of chicken between Netflix's 'safe split sale' and Paramount's 'big cash offer' over the next month.