In an attempt to beat Netflix to securing a deal for Warner Bros., Paramount has made public its all-cash offer. The offer is not just for Warner Bros, but the entirety of Warner Bros. Discovery, including the TV networks.
Key Takeaways
- While Netflix has agreed to acquire Warner Bros. for $83B, Paramount has countered with a public $108B all‑cash offer for the entire Warner Bros. Discovery business, including Discovery Global.
- Paramount argues its offer provides greater value, faster completion, and fewer regulatory hurdles compared to Netflix’s slower, mixed cash‑and‑stock deal.
- Paramount also claims its proposal is more competitive and beneficial for consumers, labeling Netflix’s offer “inferior” and “anticompetitive.”
While Paramount and Netflix were previously understood to have both been interested in acquiring Warner Bros, confirmation came through late last week that Netflix had secured the deal.
According to the previous announcement, Netflix plans to acquire Warner Bros. for around $83 billion.
The main problem with that deal is that it is expected to take up to eighteen months to complete. One of the reasons for this is that Warner Bros. Discovery first needs to continue its separation into two companies – Warner Bros. and Discovery Global.
In a bid to circumvent that deal, and speed up the process in general, Paramount has made an offer for the entirety of Warner Bros. Discovery.
The $108.4 billion offer is not only for the new Warner Bros. business that Netflix plans to buy, but also the Discovery Global business that Netflix won’t be buying.
According to Paramount’s David Ellison, this is not a new offer, but the same one that was previously made in private, with Ellison suggesting the Warner Bros. Discovery Board of Directors is actively choosing to go with Netflix’s offer even though it is not in the best interest of shareholders.
Paramount appears to have now announced their offer publicly in an attempt to appeal directly to shareholders.
“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company. 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,” said David Ellison, Chairman and CEO of Paramount.
In addition to arguing its offer is more substantial, Paramount also argues its deal is expected to encounter fewer regulatory hurdles, resulting in a swifter timeline 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,” added Ellison.
As well as being better for shareholders, Paramount argues its offer is better for consumers as well, as it is more competitive than Netflix’s “inferior” and “anticompetitive” offer.
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