Paramount Skydance responded to Warner Bros. Discovery’s rejection of its takeover offer, maintaining that its $30 per share cash offer is better than the current deal with Netflix.
Paramount urges WBD shareholders to take a closer look at the value it offers.
Paramount Stands Firm on Cash Offer
Paramount recently restated its offer to buy Warner Bros. Discovery for $30 per share, paid in cash. The company says this offer is fully funded and would immediately benefit shareholders.
The company announced it has resolved most of the issues brought up by Warner Bros. Discovery’s board. This includes a firm commitment from billionaire Larry Ellison to personally guarantee a significant amount of the funding.
David Ellison, Chairman and CEO, explained that the offer being entirely in cash makes it easier to determine its value and eliminates the risks associated with deals involving stock. He highlighted that the changing value of Netflix’s offer, which included both stock and cash, was a major reason for their approach.
According to Paramount, their offer to buy Discovery Global is worth more in cash than the total value of the deal Netflix proposed, even if the spin-off goes through.
Paramount Highlights Certainty and Speed
Paramount highlighted that its offer is a straightforward, all-cash deal, providing Warner Bros. Discovery shareholders with immediate and guaranteed funds. This is in contrast to Warner Bros. Discovery’s proposal, which includes cash, stock, and potential future payments dependent on a spin-off that may take years to finalize.
Paramount points out that this is different from the Netflix agreement, which depended on fluctuating stock values and a lengthy regulatory approval process.
The company confirmed that all funding for the deal is secured, including support from leading banks for the loan part of it. However, Warner Bros.’ board members don’t approve of the deal’s structure, considering it relies too heavily on debt.
Paramount’s Chairman and CEO, David Ellison, stated that their offer is more valuable and offers a faster, more secure path to completion for Warner Bros. Discovery (WBD) investors. He emphasized that Paramount has been diligently working to benefit WBD shareholders and is dedicated to discussing the strengths of their proposal and continuing the necessary regulatory approvals.
Shareholder Appeal vs. Board Resistance
Even though Paramount wants to move forward, Warner Bros. Discovery’s board continues to advise shareholders to turn down Paramount’s offer and approve the deal with Netflix, citing concerns that Paramount’s financial plan is too risky and unreliable.
Paramount strongly disagrees with that evaluation, arguing its offer is a simple trade-off: receive more money immediately, but with less potential impact from future market fluctuations.
A crucial part of this intense company fight will be how shareholders respond, particularly as the deadline for the tender offer gets closer.
Read More
- 39th Developer Notes: 2.5th Anniversary Update
- Celebs Slammed For Hyping Diversity While Casting Only Light-Skinned Leads
- The Sega Dreamcast’s Best 8 Games Ranked
- :Amazon’s ‘Gen V’ Takes A Swipe At Elon Musk: Kills The Goat
- Game of Thrones author George R. R. Martin’s starting point for Elden Ring evolved so drastically that Hidetaka Miyazaki reckons he’d be surprised how the open-world RPG turned out
- Gold Rate Forecast
- Umamusume: All G1, G2, and G3 races on the schedule
- Ethereum’s Affair With Binance Blossoms: A $960M Romance? 🤑❓
- Thinking Before Acting: A Self-Reflective AI for Safer Autonomous Driving
- Quentin Tarantino Reveals the Monty Python Scene That Made Him Sick
2026-01-08 18:03