Despite Warner Bros. Discovery rejecting its recent offer, Paramount Skydance, headed by David Ellison, is still trying to convince shareholders that its $30-per-share cash offer is a better deal than the $83 billion agreement Warner Bros. Discovery made with Netflix.
Paramount stated on Thursday that Warner Bros. Discovery (WBD) had declined their offer to be bought. Specifically, WBD’s board chose not to discuss Paramount’s proposal of $30.00 per share, which would have been an all-cash deal. This decision followed WBD’s recommendation to pursue a deal with Netflix instead.
Paramount stated that it has consistently and positively responded to every concern Warner Bros. Discovery (WBD) has brought up. The company also highlighted that its revised December offer included a personal guarantee from Larry Ellison to cover the financial investment.
David Ellison, the head of Paramount Skydance, stated that their offer is better for Warner Bros. Discovery (WBD) shareholders, promising them more value and a faster, more secure deal. He added that they are eager to discuss the benefits of their offer with WBD and continue working through the necessary regulatory approvals.
Paramount questioned the stability of the agreement with Netflix. Originally, the deal, announced in December, included $23.25 in cash, $4.50 in Netflix stock, and a portion of a future Discovery Global spin-off. However, Paramount stated that a decrease in Netflix’s stock price has reduced the overall value of the deal for Warner Bros. Discovery shareholders to approximately $27.42 per share.
Paramount raised concerns about how much the planned spin-off of Discovery Global is worth. They stated that Warner Bros. Discovery’s board hasn’t provided any information to help investors determine the value of their continued ownership. Paramount also pointed out that shares of a similar company, Versant Media, recently launched and haven’t performed well.
According to the agreement, Netflix would purchase Warner Bros. Discovery’s film and TV studios, along with HBO, HBO Max, and its gaming division, for $27.75 per share. The purchase would be finalized after Warner Bros. Discovery separates its Discovery Global division, which includes channels like CNN, TBS, HGTV, Food Network, and the Discovery+ streaming service.
According to Bernstein & Co. analyst Laurent Yoon, Paramount is facing significant challenges. He believes a small increase in Warner Bros. Discovery’s offer for Paramount would likely just lead to further counteroffers. Yoon also notes that Netflix appears committed to pursuing a deal, supported by its strong financial position and increasing cash flow – resources that would be difficult for even someone like Larry Ellison to equal.
As a fan, it sounds like Paramount isn’t planning on increasing their bid any further—they’re sticking with $30 a share. It’s a bit worrying because it looks like Netflix is ready to keep moving forward with their own deal, and I’m not sure what Paramount will do next!
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2026-01-08 19:45