Paramount Sticks to $30/Share Offer for WBD After Board Rejects Bid

Paramount Skydance Stands Firm on $30/Share Offer for Warner Bros. Discovery

David Ellison’s Paramount Skydance is making it clear that they are not backing down in their pursuit of Warner Bros. Discovery with their $30/share offer. Despite WBD’s board rejecting the offer, Paramount remains committed to acquiring the entertainment giant.

In a statement, David Ellison emphasized the value and certainty of Paramount’s offer, stating that it provides superior value to WBD shareholders compared to the deal with Netflix. Paramount’s offer of $30 per share in cash far exceeds Netflix’s cash component of only $23.25 per share, making it a more lucrative option for shareholders.

Paramount has also expressed confidence in their ability to secure regulatory approval for the acquisition, highlighting the potential benefits of their deal over the Netflix merger. They have secured all necessary financing for the offer, with $41 billion of new equity and $54 billion of debt commitments.

However, WBD’s board has raised concerns about Paramount’s funding commitments and accused the company of misleading shareholders. The board stated that Paramount’s proposal lacks a full backstop from the Ellison family, casting doubt on the certainty of the deal funding.

Paramount has urged WBD shareholders to consider their offer and has set up a website with details of the proposal. They have criticized WBD’s sales process, alleging that the board did not act in the best interest of shareholders by not engaging with Paramount’s superior offer.

As the battle for Warner Bros. Discovery continues, Paramount is calling on shareholders to tender their shares for their bid. To secure victory over the Netflix agreement, Paramount will need at least 90% of WBD’s outstanding shares in favor of their proposal.