
The Digest:
Paramount has launched an all-cash tender offer valued at $108.4 billion to acquire Warner Bros. Discovery, challenging a rival bid from Netflix.
Key Points
- Paramount’s offer is $30 per share, a 139% premium over WBD’s September stock price.
- The bid includes Warner Bros. assets along with cable channels like CNN, TNT, TBS, and Discovery.
- Paramount CEO David Ellison criticized Netflix’s $83 billion bid as “inferior and uncertain.”
- Paramount argued its deal offers greater regulatory certainty than Netflix’s streaming-focused proposal.
- The merger would unite Paramount+, CBS, and Nickelodeon with HBO Max and major sports rights.
- Paramount projects over $6 billion in cost savings and promises continued theatrical releases.
- Warner Bros. stock surged over 7% Monday, while Netflix shares fell more than 2%
Sources: Paramount Statement, CNBC Interview, AFP Report, Market Data