Hollywood studio Paramount will not allow Netflix's acquisition of Warner Bros. move forward without a bidding war. The historic film company today announced its own proposal for Warner Bros. that is even larger than Netflix's “inferior” proposal.
Paramount is offering $18 billion more money than Netflix. according to press releaseand $30 a share, rather than Netflix's $27.50, and it goes after all of Warner Bros., including the Global Networks segment, which includes sports and news television brands such as CNN and TNT Sports. Netflix only wants part of Streaming & Studios, which includes Warner Bros., among others. Motion Picture Group, DC Studios and HBO.
Paramount Chairman and CEO David Ellison commented: “[Warner Bros.] shareholders deserve the opportunity to consider our attractive offer to purchase their shares as a whole for cash. Our public offering, which is subject to the same terms and conditions that we provided to the board of directors of Warner Bros. Discovery is privately held and provides superior value and a more reliable and faster path to project completion.”
The press release stated that Paramount had submitted to Warner Bros. six buyout offers within 12 weeks, but apparently Warner Bros. “I never dealt meaningfully with these proposals.” As such, Paramount has now taken its proposal directly to shareholders and the board of directors to “pursue this clearly superior alternative.”
Paramount said it was “very confident” of receiving regulatory approval for its proposal, which it called “pro-consumer.” Paramount believes Netflix's bid could fail because of its perceived monopoly on streaming video. “The Netflix deal creates a clear risk of higher prices for consumers, lower pay for content creators and talent, and destruction of U.S. and international theatrical exhibitors,” Paramount said.
“We believe our offering will make Hollywood stronger,” Paramount's Ellison concluded. “This is in the best interests of the creative community, consumers and the film industry. We believe they will benefit from increased competition, increased content spending and theatrical releases, and more films in theaters as a result of our proposed transaction. We look forward to working to deliver this capability expeditiously so that all stakeholders can begin to benefit from the benefits of the combined company.”
On Friday, Netflix announced an $87.2 billion deal to acquire Warner Bros., which will also see the company take over game studios such as Rocksteady, a well-known Batman Arkham Series; NetherRealm, which makes Mortal Kombat; and Avalanche, who just recently made Hogwarts Legacy. Will the price tag now go up?
