The company said that it has addressed each concern raised by Warner Bros. Discovery “diligently” and “constructively.”
- Paramount added that it had “cured” every issue that was raised by Warner Bros. Discovery on December 17.
- This includes an irrevocable personal guarantee by Oracle co-founder and chairman, Larry Ellison.
- On Wednesday, WBD’s board urged shareholders not to vote in favor of Paramount’s offer, stating that it comes with “significant risks.”
Paramount Skydance Corp. (PSKY) on Thursday maintained that its $30 per share offer for Warner Bros. Discovery Inc. (WBD) is “superior” to the deal announced by Netflix Inc. (NFLX).
In a statement on Thursday, the company said that it has “diligently and constructively addressed each concern raised by WBD.”
Paramount Skydance shares edged lower by 0.03% in Thursday’s opening trade, while Warner Bros. Discovery shares declined 0.5%. Retail sentiment on Stocktwits around both companies trended in the ‘bearish’ territory.
Netflix shares were down 1% at the time of writing, with retail sentiment trending in the ‘neutral’ territory on Stocktwits.
What Is Paramount Saying?
Paramount added that it had “cured” every issue that was raised by Warner Bros. Discovery on December 17, including by providing an irrevocable personal guarantee by Oracle Corp. (ORCL) co-founder and chairman, Larry Ellison.
Larry Ellison is the father of David Ellison, who is the chairman and CEO of Paramount Skydance.
“Nevertheless, WBD continues to raise issues in Paramount's offer that we have already addressed, including flexibility in interim operations,” the company said.
‘Superior’ Offer
Explaining why it called its offer “superior” to Netflix’s, Paramount said that at $30 per share, its deal is easy to value when compared to the Netflix transaction.
Paramount’s offer values Warner Bros. Discovery at $108.4 billion, including the company’s debt, as well as cable TV networks such as CNN, the Discovery Channel, and TNT. In contrast, Netflix’s offer valued WBD at an enterprise value of $82.7 billion, but excluded the spinoff company.
While announcing its hostile bid in December, Paramount highlighted that it provides WBD shareholders $18 billion more in cash than the consideration offered by Netflix.
WBD’s Contention
On Wednesday, Warner Bros. Discovery’s board urged shareholders not to vote in favor of Paramount’s offer, stating that it comes with “significant risks.”
The company also called Paramount’s offer “illusory”, adding that it cannot be completed before its current expiration date. WBD added that PSKY’s offer is “effectively a one-sided” option for the David Ellison-led company, as it can be terminated or amended by Paramount at any time.
PSKY stock is down 8% year-to-date, WBD stock is down 2%, while NFLX stock has declined 4%.
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