Paramount Reasserts $30 Per Share Cash Bid for Warner Bros. Discovery

Bassyonni

ago 19 hours

Paramount Reasserts $30 Per Share Cash Bid for Warner Bros. Discovery

Paramount reaffirmed its cash bid of $30 per share for Warner Bros. Discovery, maintaining the offer without any increase. The company, led by David Ellison, emphasized that this offer is more advantageous than Warner’s existing agreement with Netflix.

Details of the Cash Offer

Paramount’s statement highlighted its thorough approach to addressing concerns raised by Warner Bros. Discovery (WBD). According to Paramount, they have resolved previous issues, including providing an irrevocable personal guarantee from Larry Ellison for the equity financing.

Response to WBD’s Rejection

The WBD board advised shareholders to reject the Paramount offer.
WBD claims the Netflix deal, valued at around $27.75 per share, is superior.
Regulatory approval is required for both transactions, potentially delaying closure by up to 18 months.

Comparing the Offers

WBD’s agreement with Netflix includes both cash and stock, amounting to approximately $27.42 per share when accounting for current stock prices. Paramount argues that their $30 cash offer presents a more stable financial option for WBD shareholders.

Paramount’s Position on Risks

Paramount disputed WBD’s claims that their offer poses higher risks. They cited declines in Netflix’s stock and volatility in Comcast’s recent transactions as indicators of potential instability for WBD’s deal with Netflix.

Paramount emphasizes the importance of WBD’s transparency regarding its agreement with Netflix.
Paramount claims secure financing arrangements with reputable institutions like Bank of America and Citibank.

Engagement and Shareholder Action

Paramount has initiated a tender offer for WBD shareholders, allowing them to exchange shares until January 21. They aim to engage with WBD’s board directly to discuss their proposal and ensure that shareholders are informed of the potential benefits of their cash bid.

In summary, Paramount is asserting its $30 per share cash bid as a timely and secure alternative to Warner Bros. Discovery’s ongoing arrangement with Netflix, urging stakeholders to consider this superior offer as a solid choice for their future investments.