US EditionSome of Warner Bros' Biggest Investors Are Split on Paramount Offer
Paramount's $108 billion hostile bid surpasses Netflix's $82.7 billion offer as competition intensifies amid regulatory and financial risks, analysts say.
- Last Thursday, Warner Bros. Discovery accepted Netflix’s $27.75-per-share bid valued at $82.7 billion, and in the days since, Paramount Global went to shareholders with a hostile $30-per-share offer valued at $108 billion.
- The Ellison family's takeover of Paramount Global, merging with David Ellison’s Skydance Media, fuels an aggressive team that industry observers say won’t relent soon, while David Ellison hints at further bids.
- Regulatory reviews would likely subject the bids to aggressive antitrust scrutiny, as analysts warn Netflix’s debt would surge to nearly $108 billion and Warner Bros. Discovery's IP faces rapid value decay from AI and new media.
- Observers predict more fireworks as competing bidders escalate the contest, while Warner Bros. Discovery management views offers as likely to push the price higher amid concerns industry figures warn about reduced creative output.
- At a Tuesday UBS panel, Kevin Mayer said he would be surprised if offers aren’t sweetened, drawing on his Disney experience and noting the Ellison family's substantial resources and David Ellison’s hints.
29 Articles
29 Articles
Why WBD's CEO ghosted David Ellison during the bidding war
Warner Bros. Discovery CEO David Zaslav ignored Paramount Skydance CEO David Ellison's text before announcing the company's Netflix deal.JC Olivera/Variety via Getty Images; Patrick T. Fallon/AFP via Getty ImagesParamount Skydance's David Ellison texted Warner Bros. Discovery's CEO as the bidding war heated up.WBD just shared why its top executive never responded to Ellison's text.Although Paramount's offer for WBD was rejected, it can appeal to…
Paramount’s $54 billion debt plays a starring role in Warner bid
Even if Paramount Skydance Corp. manages to take over Warner Bros. Discovery Inc. against the company’s will, it faces another high hurdle: coping with the colossal $54 billion of debt it’s planning to take on. Paramount has a temporary financing package in place for the combined company, but it hasn’t locked in a maximum rate on more permanent borrowings for the transaction. The result could ...
Mario Gabelli signals support for Paramount in Warner fight
Money manager Mario Gabelli said it’s “highly likely” he will tender his clients’ Warner Bros. Discovery Inc. shares to Paramount Skydance Corp. in an effort to spark a bidding war for the film and TV company. In an interview, Gabelli said Paramount will ultimately have to increase its $30-a-share bid for Warner Bros. and that Netflix Inc. will also likely counter with a higher offer. Saying he supports the Paramount tender is a way of signalin…
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