Paramount Skydance playing the waiting game to upend Netflix’s bid for Warner Bros. Discovery: sources
Paramount Skydance has launched what insiders are calling “Plan D” to disrupt Netflix’s bid for Warner Bros. Discovery, according to sources.
The plan focuses on highlighting the regulatory uncertainties surrounding the Netflix deal and how it could pose risks for both the transaction and Netflix itself.
Initially, Paramount tried to convince WBD CEO David Zaslav and his board that their all-cash offer of $30 per share for the entire company was superior to Netflix’s cash-and-stock deal for the Warner Bros. studio and HBO Max.
The Netflix deal is facing challenges, especially with the $3 per share promise when WBD sells CNN, TNT, and Discovery in the spring.
Plan B involved Paramount launching a hostile bid to persuade WBD shareholders to accept their all-cash offer.
Following unsuccessful attempts, “Plan C” involved the possibility of suing WBD, leading to the current “Plan D” of playing the long game and highlighting potential issues in the Netflix deal.
The Ellisons and Cardinale believe that the stock portion of the Netflix deal is losing value and may not recover, especially considering the significant debt involved.
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