Paramount has unveiled a hostile all-cash tender offer to acquire Warner Bros. Discovery (WBD) for $30 per share, valuing the company at $108.4 billion and challenging a previously agreed deal between WBD and Netflix.
The offer represents a 139% premium over WBD’s September share price of $12.54. Paramount called Netflix’s earlier $27.25-per-share bid, valued at approximately $82.7 billion, “inferior and uncertain.”
Paramount CEO David Ellison said, “WBD shareholders deserve an opportunity to consider our superior all-cash offer.”
Unlike Netflix’s deal, Paramount’s proposal covers WBD’s entire business, including cable networks such as CNN, TBS, and Discovery Channel.
In a statement, Paramount added, “Our offer provides a superior alternative to the Netflix transaction, which offers inferior and uncertain value and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process.”
Ellison emphasised, “We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry.”
Following the announcement, WBD shares surged over 6%, Paramount rose more than 3%, while Netflix fell over 3% in early trading.
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