The ongoing acquisitions and mergers for Hollywood studios have shocked the industry and moviegoers as a whole. Things reached a new level when Netflix seemingly won a bid for Warner Bros. Discovery that cost $72 billion (adjusted to $82.7 billion when accounting for enterprise value.) Now Paramount is trying to outbid Netflix with a new offer to take over Warner Bros. Discovery for $108.4 billion.
Paramount was part of the initial group of companies trying to acquire Warner Bros. Discovery alongside Netflix and Comcast. While Netflix ultimately won the studio’s interest, and seemingly will take over the company based on regulatory approval, Paramount isn’t giving up.
In an official press release, as shared via CBM, Paramount Skydance announced their plan that revolves around $30 per share when calculating their all-cash offer. Interestingly, while Netflix only planned to acquire Warner Bros. Pictures and HBO, Paramount wants to include the company’s other channels like CNN, TBS, and TNT.
Here’s what they shared in a statement:
“Paramount’s strategically and financially compelling offer to WBD shareholders provides a superior alternative to the Netflix transaction,” the company said, “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.”
An additional statement was shared by Paramount Skydance CEO David Ellison:
“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.”
“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.”
Obviously we’ll have to see how this situation develops. In addition to whoever wins the final bid for Warner Bros. Discovery, they will be subject to regulatory approval, and United States president Donald Trump is said to be involving himself with the decision. Stay tuned to ScreenGeek for any further updates as we have them.