Last Friday saw huge news break across the film and entertainment industry as it was announced that Netflix had won a bidding war for ownership of Warner Bros., set to close Warner Bros. split from Discovery goes into effect. Now, a new challenger has appeared in surprising fashion: Paramount has laid down an all-cash offer to Warner Bros.’ shareholders in an attempt to gain control of the company.
Before it was announced that Netflix had reached an agreement with Warner Bros., Paramount was the favorite to win the bidding war.
“We’re sitting on Wall Street, where cash is still king,” Paramount CEO David Ellison told CNBC yesterday. “We are offering shareholders $17.6 billion more cash than the deal they currently have signed up with Netflix. And we believe when they see what is currently in our offer, then that’s what they’ll vote for.”
While Paramount is technically offering more money for Warner Bros., it is also bidding for ownership of the company completely, including all of its properties. Netflix, on the other hand, is not interested in the company’s cable channels.
“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” Ellison said. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion. We believe the WBD Board of Directors is pursuing an inferior proposal.”
Warner Bros. has responded by stating that it will review the offer and make a recommendation within 10 business days.
