US EditionParamount’s Hostile Takeover Bid Is One of the Largest
Paramount's $30-per-share hostile bid follows Netflix's $27.75 offer amid union fears of $6 billion in layoffs from media consolidation.
- On Monday, Paramount launched a hostile $30-per-share bid for Warner Bros. Discovery that matched a private Thursday offer, though David Ellison, Paramount CEO, says he knows the WBD board can't accept it.
- After Netflix clinched an $83,000,000,000 deal, WBD accepted Netflix's $27.75-per-share offer for its studio and streaming assets on Friday.
- Company filings and public remarks show Paramount's SEC filing disclosed Ellison texted WBD CEO David Zaslav: `Please note importantly we did not include 'best and final' in our bid.` Ellison was overheard at a UBS event saying accepting the offer as-is would be `admitting breach of fiduciary duty`.
- WBD said it would `carefully review and consider Paramount Skydance's offer` with its independent financial and legal advisors, while the Writer's Guild of America denounced the bid as a problem of consolidation.
- Industry filings show Paramount projects $6,000,000,000 in cost-savings mainly from headcount cuts, Netflix forecasts $2-3 billion in synergies by the time the merged company turns 3, and firms cut thousands this year.
19 Articles
19 Articles
David Ellison, head of Paramount Skydance, goes to all: to sleep on mattresses, like the protagonists of The Godfather. The studio responsible for the historic film ignored Warner Bros Discovery’s (WBD) board to appeal directly to its rival’s shareholders with an offer of $108 billion. Not only does it offer more money than Netflix, but it also includes other incentives that make it a hard offer to refuse.
David Ellison says he knows why the Warner Bros. Discovery board can't accept his most recent offer
David Ellison's Paramount Skydance isn't giving up in its pursuit of Warner Bros. Discovery.Angela Weiss/AFP via Getty ImagesParamount submitted a hostile offer for Warner Bros. Discovery after Netflix won the bidding war.CEO David Ellison says he knows the WBD board can't accept the Monday offer.These comments and others suggest Ellison could be willing to increase his bid.Paramount CEO David Ellison says he knows the Warner Bros. Discovery boa…
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