The takeover battle for Warner Bros. Discovery (WBD) has taken another dramatic turn. After being rejected for the eighth time, Paramount Skydance is sharpening its argument: WBD’s cable television network division—Discovery Global—is effectively worth nothing.
In a letter sent to WBD this week, Paramount claimed that once debt and related liabilities are factored in, the cable assets it seeks to acquire carry a "$0 per share" valuation. The unusually blunt assessment is designed to strengthen Paramount’s case that its $30‑per‑share all‑cash offer is superior to Netflix’s competing bid.
The timing is no coincidence. The letter arrived just one day after WBD again rejected Paramount’s proposal, reaffirming its preference for Netflix’s offer, which values WBD at $82.7 billion and includes only the studio and streaming assets—not the cable networks.
Paramount’s Argument: The Cable Networks Are a Liability, Not an Asset
Paramount acknowledges that, in theory, WBD’s cable assets "could trade with up to ~$0.50 per share" of value under ideal conditions. But the company insists that real‑world market data tells a different story.
The key evidence: the disastrous stock‑market debut of Versant Media, Comcast’s newly spun‑off cable network group. Versant’s shares plunged more than 20%–30% in their first days of trading, raising questions about the long‑term value of legacy cable businesses in a streaming‑dominated world.
Paramount argues that if Discovery Global were spun off like Versant, it would likely suffer the same fate—possibly trading at zero after accounting for debt obligations.
This is a sharp shift from Paramount’s earlier valuations. At various points in the bidding process, the company suggested Discovery Global was worth $1 per share, and later $1.40 per share, based on Wall Street’s pre‑IPO expectations for Versant. But Versant’s weak performance has prompted a more pessimistic view.
Why Versant Matters
Versant is widely seen as the closest comparable company to WBD’s cable division. It owns:
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CNBC
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MS NOW (formerly MSNBC)
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USA Network (with live sports rights)
Discovery Global, meanwhile, owns:
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CNN
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TNT
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TruTV
Because both companies operate large, aging cable networks with declining subscriber bases, analysts have used Versant’s valuation as a proxy for Discovery Global.
Based on Versant’s market cap as of Wednesday, Business Insider estimates Discovery Global is worth roughly $1.20 per share—far below what WBD has implied in its own communications.
WBD Pushes Back: "Our Cable Assets Are Larger, More Profitable"
WBD strongly disputes Paramount’s valuation. In a letter to shareholders, the company argued that Discovery Global is:
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Larger
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More profitable
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More geographically diversified
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More internationally relevant
than Versant’s portfolio.
Some analysts agree. Rich Greenfield of Lightshed Partners called the comparison to Versant "misequivocation," arguing that Discovery Global could be worth four to five times more than Paramount claims.
WBD’s board remains confident that a strategic review could unlock significantly higher value than Paramount’s estimates suggest.
Paramount’s Strategy: Convince Shareholders, Not the Board
After eight rejections, Paramount appears to be shifting its strategy. CNBC reports that the company may take its offer directly to WBD shareholders, arguing that its $30‑per‑share all‑cash bid is more attractive and carries fewer uncertainties than Netflix’s mixed cash‑and‑stock offer.
Paramount is also attempting to address WBD’s concerns about financing. A major step was securing a $40.4 billion personal equity guarantee from Oracle co‑founder Larry Ellison, the father of Paramount CEO David Ellison.
Paramount says this guarantee "cures every issue" WBD raised about its earlier proposals.
Netflix’s Offer: Higher Certainty, Lower Scope
Netflix’s offer—valued at $27.75 per share—is lower than Paramount’s but includes only the streaming and studio assets, which WBD considers its crown jewels. The cable networks would be spun off into a separate company under the Netflix plan.
WBD’s board argues that Netflix’s proposal:
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Offers greater certainty of completion
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Avoids the regulatory risks of a full‑company acquisition
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Focuses on the assets with the strongest long‑term growth potential
Paramount counters that Netflix’s offer contains "multiple uncertain components" and has already "decreased in total value" since it was announced.
The Bigger Picture: Cable TV’s Decline Is Accelerating
The debate over Discovery Global’s valuation reflects a broader industry trend: the rapid decline of traditional cable television.
Versant’s weak debut underscores investor skepticism about:
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Shrinking cable subscriber bases
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Rising content costs
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Declining advertising revenue
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High debt loads across legacy media companies
Paramount is using this skepticism to argue that its all‑cash offer is the only realistic way for WBD shareholders to extract value from the cable assets.
What Happens Next?
The bidding war is far from over. Key developments to watch:
1. Will Paramount go hostile?
CNBC reports that Paramount is considering taking its offer directly to shareholders if the board continues to resist.
2. Will WBD’s board reconsider if Versant continues to fall?
Versant’s stock performance is now a central variable in the valuation debate.
3. Will regulators intervene?
A full acquisition by Paramount may face tougher scrutiny than Netflix’s partial‑asset deal.
4. Will Larry Ellison increase his financial backing?
His involvement has already reshaped the credibility of Paramount’s bid.
Conclusion
Paramount’s claim that WBD’s cable assets are "worth zero" is more than a valuation argument—it’s a strategic gambit in one of the most high‑stakes media battles in years. With Versant’s rocky debut reshaping expectations for legacy cable networks, Paramount is betting that shareholders will ultimately prefer the certainty of its $30‑per‑share all‑cash offer over Netflix’s more limited proposal.
WBD, meanwhile, insists its cable assets are far more valuable than Paramount suggests—and that Netflix’s deal offers a cleaner, more strategic path forward.
As the fight escalates, one thing is clear: the future of WBD will be shaped not just by streaming economics, but by the rapidly shifting perception of what cable television is worth in 2026.