David Ellison’s Paramount Skydance has extended an all-cash offer at $30 per outstanding share (approximately $108.4 billion) for WBD after Netflix’s initial offer was accepted; shareholders have 10 business days to accept or reject the new offer.
Player 3 has re-joined the game of Entertainment Monopoly! David Ellison’s Paramount Skydance has extended a hostile bid to rival Netflix’s acquisition of Warner Bros.Discovery.
The all-cash offer at $30 per outstanding share (approximately $108.4 billion), the same terms offered on December 4, was taken directly to WBD shareholders on Monday.Shareholders have 10 business days to accept or reject the new offer.Netflix and WBD previously agreed to a more complex cash and stock transaction, valued at $27.75 per share of WBD and approximately $82.7 billion overall.
“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” said Ellison.“Our public offer, which is on the same terms we provided to the Warner Bros.Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion.
We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process.We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares.” “Paramount’s strategically and financially compelling offer to WBD shareholders provides a superior alternative to the Netflix transaction, which offers inferior and uncertain value and 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,” said a Paramount spokesperson.Three Middle Eastern sovereign wealth funds (Saudi Arabia, Qatar and Abu Dhabi) and Jared Kushner’s Affinity Partners have teamed with Paramount on the deal, and “have agreed to forgo any governance rights — including board representation — associated with their non-voting equity investments,” and “will not be within CFIUS’s jurisdiction.” Chinese internet company Tencent, which had previously committed $1 billion to the deal, is no longer a financing partner.
In addition to the higher monetary value, Paramount also claims the deal will be better for Hollywood, and pledges to release over 30 films in theaters if the deal is clenched.“Our focus is on expanding creative output, not dominating the sector, as Netflix envisions,” said a spokesperson.“Our goal is to make Hollywood stronger in a way that benefits the entire ecosystem.”
Journalist, antique shop owner, aspiring gemologist—L'Wren brings a diverse perspective to animation, where every frame reflects her varied passions.
Netflix, Warner Bros.
Discovery Agree to $82.7 Billion Acquisition
Skydance Reveals ‘New Paramount’ Vision Ahead of Merger Finalization
Jennifer Dodge Named Paramount Animation President
Skydance, National Amusements Reach Tentative Paramount Acquisition Deal
Skydance Reveals $400 Million Investment from KKR and Ellison Family
Ramsey Naito Exits as President of Paramount Animation
