Paramount Skydance defends $78B takeover bid for WBD, claims CNN spinoff could trade at zero dollars

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Paramount Skydance defends B takeover bid for WBD, claims CNN spinoff could trade at zero dollars — Paramount Skydance defends 78B takeover bid for WBD claims CNN.jpg

Paramount Skydance Defends $78 Billion Bid to Acquire Warner Bros. Discovery

Paramount Skydance reiterated its commitment to the revised $78 billion bid to acquire Warner Bros. Discovery after the latter rejected the offer in favor of Netflix.

The bidder pointed to Comcast’s recent spinoff of NBCUniversal cable assets into a new company called Versant as a cautionary tale, as Netflix’s deal with Warner Bros. Discovery involves spinning off cable assets including CNN.

If Discovery Global, Netflix’s proposed spin-off of WBD cable assets, mirrors Versant’s performance, Paramount argued it would be valued at zero dollars per share.

Paramount addressed concerns raised by Warner Bros. Discovery about the initial offer in December, including a personal guarantee of $40.4 billion in equity financing from billionaire Larry Ellison, father of Paramount Skydance CEO David Ellison.

“Our offer provides greater value and a more certain, expedited path to completion for Warner Bros. Discovery investors,” said David Ellison in a statement.

Warner Bros. Discovery and Netflix have not responded to requests for comment.