Earlier today (December 8), Paramount Skydance’s hostile takeover bid rocked the entire industry following streaming giant Netflix’s bid last week for Warner Bros. Discovery. Two industry giants are battling it out to acquire another giant, but Warner Bros. still hasn’t decided.
The Warner Bros. Discovery board has officially announced it will review Paramount’s proposal and issue its decision within 10 business days. Paramount’s hostile bid to acquire all of WBD’s remaining stock was valued at $30 per share, which would have an enterprise value of $108.4 billion.
Netflix’s deal with WBD to buy Warner Bros.’s studio operations, HBO, and HBO Max for an enterprise value of $82.7 billion was announced last week, but Paramount hasn’t remained quiet about its dislike for the current negotiations. The WBD board released a statement after Paramount’s shocking bid:
“The Warner Bros. Discovery Board of Directors (the ‘Board’), consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix, Inc. Warner Bros. Discovery intends to advise its stockholders of the Board’s recommendation regarding Paramount Skydance’s tender offer within 10 business days.”
10 business days from today (December 8) would be December 19, as the WBD board has advised all stockholders to “not to take any action at this time with respect to Paramount Skydance’s proposal.” Paramount’s bid is vastly larger than Netflix’s and is being backed by three Arab sovereign wealth funds and Jared Kushner’s Affinity Partners, according to Variety.
CEO David Ellison has not been quiet regarding his intentions to acquire WBD, and in his statement today reaffirmed that, as well as trying to not-so-subtly aim for Netflix’s deal:
“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.
We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry. We believe they will benefit from the enhanced competition, higher content spend and theatrical release output, and a greater number of movies in theaters as a result of our proposed transaction. We look forward to working to expeditiously deliver this opportunity so that all stakeholders can begin to capitalize on the benefits of the combined company.”
While it’s still ongoing, who will get the final laugh in the battle for Warner Bros., certainly, one of the biggest players in Hollywood is now being sold for parts in a devastating blow to cinephiles everywhere.