Paramount goes hostile in its bid for Warner Bros Discovery

"Paramount has gone hostile in its bid for Warner Bros Discovery, challenging Netflix, which reached a $72bn takeover deal with the company just days ago. Paramount said on Monday that it is going straight to Warner Bros shareholders with a bid worth about $74.4bn, or $30 per share in cash. Unlike Netflix, it is also offering to buy the cable assets of Warner Bros, and asking shareholders of the company to reject the Netflix bid."

"Paramount criticised the Netflix offer, saying it exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash. Paramount said it had submitted six proposals to Warner Bros Discovery over a 12-week period. We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry, Paramount Chairman and CEO David Ellison said in a statement."

"On Friday, Netflix struck a deal to buy Warner Bros Discovery, the Hollywood giant behind Harry Potter and HBO Max. The cash and stock deal is valued at $27.75 per Warner share, giving it a total enterprise value of $82.7bn, including debt. The transaction is expected to close in the next 12 to 18 months, after Warner completes the previously announced separation of its cable operations."

Paramount launched a hostile bid to acquire Warner Bros Discovery, offering about $74.4bn in cash — $30 per share — and proposing to buy Warner's cable assets. Paramount urged Warner Bros Discovery shareholders to reject Netflix's competing $72bn takeover offer, arguing Paramount's proposal is roughly $18bn higher and that Netflix's bid relies on an illusory valuation of the cable assets. Paramount warned the Netflix transaction would expose shareholders to a prolonged multi-jurisdictional regulatory clearance process and a complex mix of equity and cash. Paramount said it submitted six proposals over 12 weeks and claimed the deal would boost competition, content spending and theatrical releases.

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