US EditionParamount's new offer for Warner Bros is not sufficient, major investor says
Paramount's $108.4 billion bid includes a $40.4 billion personal guarantee from Larry Ellison but faces opposition from key shareholders who question financing security.
- On Dec 23, Harris Oakmark said Paramount's amended $108.4 billion bid remains insufficient and it will hold out, owning about 4% of Warner Bros Discovery shares.
- Paramount on Monday bolstered financing by securing Larry Ellison’s guarantee of $40.4 billion and increased the breakup fee to $5.8 billion, but kept its $30-per-share bid amid revocable trust concerns.
- The Warner Bros board unanimously recommended rejecting Paramount's earlier bid, saying the financing lacked a `full backstop`, favoring Netflix's $23.25 cash offer plus $4.50 in shares and Discovery Global spin-out value.
- Investor Thomas Poehling said he'll likely accept Paramount's revised offer if Netflix doesn't counter, while Vanguard, State Street and BlackRock control at least 22% of Warner Bros, giving shareholders substantial sway.
- The bidding war underscores the perceived quality of Warner Bros assets, with analysts and investors noting, `We see the two deals as a toss-up, and there is a cost to changing paths.
14 Articles
14 Articles
Major Warner Bros’ investors reject Paramount's new offer, says ‘not sufficient’
Major investors involved in the Warner Bros-Paramount merger deal are looking upon the two deals as a toss-up and believe that if Paramount is serious about the deal, it has to come up with another...
Major Warner Bros. Discovery shareholder dismisses Paramount's revised bid as 'Not sufficient'
New Delhi: A prominent investor in Warner Bros. Discovery (WBD) has labelled Paramount Skydance's amended acquisition offer as inadequate, despite enhancements including a massive financial guarantee from billionaire Larry Ellison, intensifying the ongoing bidding war for the media giant. Harris Associates, WBD's fifth-largest shareholder, holding approximately 4% of the company's shares (about 96 million shares as of September's end), expressed…
Oracle co-founder Larry Ellison — whose son, David, owns Paramount — is now personally guaranteeing $40.4 billion of the bid to acquire Warner Bros.
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