Paramount Letter to Warner Bros. Discovery Making Case for Its Bid
Variety • • general
Key Points:
- David Ellison, CEO of Paramount Skydance, has launched a hostile $30 per share all-cash takeover bid for Warner Bros. Discovery (WBD), claiming it is superior to WBD’s existing deal with Netflix and urging shareholders to tender their shares.
- Paramount argues that the Netflix deal undervalues WBD’s TV networks, estimating the networks' value at $1 per share, while the Netflix transaction implies a valuation of at least $2.25 per share, and emphasizes that its offer provides greater cash value and certainty.
- Paramount has secured financing commitments totaling $95 billion, including $41 billion in equity backed by the Ellison family and RedBird Capital, and $54 billion in debt from major banks, with no
