Offer comes days after entertainment company reached $72 billion deal with Netflix
Paramount, led by David Ellison, launched a $77.9 billion hostile takeover offer for Warner Bros. Discovery on Monday, taking its case directly to Warner shareholders just days after the company agreed to a deal with Netflix.
Paramount is arguing that its all-cash offer of $30 per share for all of Warner—owner of networks including CNN, TBS, and TNT, as well as the HBO Max streaming service—is a better deal for shareholders and more likely to pass regulatory approval. Paramount's proposal equates to an enterprise value of $108.4 billion, including assumption of debt.
"Our proposal is superior to Netflix in every dimension," Ellison said on a call Monday morning with analysts and investors.
Comparison with Netflix Deal
Netflix agreed last Friday to pay $72 billion, or $27.75 per share, for Warner's studio and HBO Max streaming business in a cash-and-stock deal after the entertainment company splits itself in two. Paramount criticized Netflix's proposal as "a volatile and complex structure," noting that the mixed consideration of $23.25 in cash and $4.50 in stock exposes shareholders to Netflix stock price fluctuations.