Paramount made a hostile bet Warner Bros. Discoverytesting Netflix which just a few days ago concluded a takeover deal worth US$72 billion.
On Monday, Paramount said it would approach Warner Bros. shareholders directly. with a $30 per share cash offer for the entire Warner Bros. Discovery, including its Global Networks segment, asking it to reject its deal with Netflix.
This is the same proposal that Warner Brothers rejected in favor of Netflix's proposed merger that would change the entertainment landscape in the US.
Paramount criticized Netflix's proposal, saying it “subjects WBD shareholders to a lengthy regulatory approval process in multiple jurisdictions with an uncertain outcome and a complex and unstable mix of capital and cash.”
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Paramount said it has submitted to Warner Bros. Discovery six offers in 12 weeks.
“We believe our proposal will make Hollywood stronger in the best interests of the creative community, consumers and the film industry,” Paramount Chairman and CEO David Ellison said in a statement.
“We believe that as a result of our proposed transaction, they will benefit from increased competition, increased content spending and film production, and more films in theaters.”
On Friday Netflix has reached a deal to buy Warner Bros. Discoverythe Hollywood giant behind Harry Potter and HBO Max. The cash and stock deal values Warner at $27.75 per share, giving it a total enterprise value of $82.7 billion, including debt.
The deal is expected to be completed in the next 12 to 18 months after Warner completes the previously announced separation of its cable operations. Networks such as CNN and Discovery are not included in the deal.
But US President Donald Trump said Sunday that Netflix's deal to buy Warner Bros. Discovery “could be a challenge” due to the size of its combined market share.
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