Paramount Skydance will launch a hostile bid to buy Warner Bros. Discovery in a last-ditch effort to beat out Netflix.
This comes after Netflix announced that it acquired Warner Bros. Discovery over the weekend in a deal valued at around US$72 billion (A$108.5 billion).
Paramount Skydance is set to retaliate by going straight to Warner Bros. with an all-cash US$30 per share deal. This is the same bid as the bid Warner Bros rejected last week and equates to an enterprise value of US$108 billion.
In a media release, Paramount said its offer to Warner Bros shareholders US$18 million more in cash than Netflix’s consideration.
“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,” Paramount CEO and chairman David Ellison said.
“We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximise the value of their shares."
Paramount also has U.S. President Donald Trump on its side as he expressed scepticism about Netflix’s proposed acquisition.
Trump said that Netflix “could be a problem” because of how much market share Netflix would end up with, and that he would be involved in the approval process.
Netflix was bidding to acquire Warner Bros studio and streaming assets, while Paramount has been bidding for the entirety of Warner Bros. Discovery, which would also include the company’s TV assets like SNNN and TNT Sports.
According to a Securities and Exchange Commission filing, Netflix agreed to pay Warner Bros. Discovery US$5.8 billion if the deal is not approved.
