paramount skydance Launching a hostile takeover bid warner bros discovery after losing Netflix The company announced Monday that it is in the midst of a months-long bidding war over its legacy assets.
Paramount will make an all-cash, $30-per-share offer directly to WBD shareholders. This is the same bid that WBD rejected last week, and Paramount Skydance CEO David Ellison said Monday that he had not received a response from Warner Bros. Discovery. The offer is backed by equity financing from the Ellison family and private equity firm Redbird Capital, as well as $54 billion in debt guarantees from Bank of America, Citi and Apollo Global Management.
“We’re really here to finish what we started,” Ellison said Monday on CNBC’s “Squawk on the Streets.” “We are committed to the company.”
Paramount’s stock rose about 5% in premarket trading Monday. Warner Bros. Discovery stock rose about 6%. Netflix’s stock price fell slightly.
On Friday, Netflix announced a deal to acquire WBD’s studio and streaming assets for $72 billion. Paramount had made a bid that included the entire Warner Bros. Discovery assets and the company’s television networks, including CNN and TNT Sports.
comcast CNBC previously reported that it also made bids for its streaming and studio businesses.
Paramount has repeatedly argued to the WBD board that keeping Warner Bros. Discovery in stock is in the best interests of shareholders.
Paramount executives also plan to argue that the partnership would significantly speed up the regulatory approval process, given the company’s small size and friendly relationship with the Trump administration, the people said.
“We’ve had great conversations with the president about this, but I don’t want to speak for him,” Ellison said Monday.
Netflix’s proposed takeover has already raised antitrust questions, especially regarding the combination of the two most powerful streaming platforms. CNBC reported Friday that the Trump administration views the deal with “strong skepticism,” and President Donald Trump said Sunday that market share considerations could cause “problems.”
Netflix has agreed to pay Warner Bros. Discovery $5.8 billion if the deal is not approved, according to a filing with the Securities and Exchange Commission on Friday. Warner Bros. Discovery said it would pay a $2.8 billion breakup fee if it decides to break up the deal to pursue another merger.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. With Comcast’s planned Versant spinoff, Versant will become CNBC’s new parent company.
This story is developing. Please check back for the latest information.
