Last week, it was announced by Netflix that the company was buying Warner Bros. in a deal worth over $82 billion, but now Paramount has launched an all-cash tender offer to acquire all of Warner Bros. Discovery's outstanding shares for $30 per-share (in cash).
In a statement released today, Paramount chairman David Ellison insisted the deal would provide "superior value" compared to Netflix's offer, along with "a more certain and quicker path to completion". The company is taking it directly to WBD shareholders "over concerns they were not presented [the] most compelling and superior transaction".
"WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company. Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion. We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process. We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares."
The accompanying press release, which is lengthy, goes on to discuss how Paramount and Warner Bros. Discovery would essentially prove a match made in heaven, with Ellison suggesting the deal would "create a stronger Hollywood" and that it's in the "best interests of the creative community, consumers and the movie theater industry".
Again, nothing's mentioned here about the gaming division of Warner Bros. and how that would be impacted by the deal, but Netflix confirmed last week that a sale would include the gaming division if it were sold to them.
Here's a bit more of Paramount's fightback against the Netflix deal:
"Paramount's strategically and financially compelling offer to WBD shareholders provides a superior alternative to the Netflix (NASDAQ: NFLX) transaction, which offers inferior and uncertain value and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash."
"The Paramount offer for the entirety of WBD provides shareholders $18 billion more in cash than the Netflix consideration. WBD's Board of Directors recommendation of the Netflix transaction over Paramount's offer is based on an illusory prospective valuation of Global Networks that is unsupported by the business fundamentals and encumbered by high levels of financial leverage assigned to the entity."
It sounds like this one is far from over, then! We'll keep an eye on it and let you know of any major updates.