Jan. 8 (UPI) — Officials for the Paramount Skydance Corp. said Thursday their offer of $30 per share to buy Warner Bros. Discovery is “superior” to a competing offer from Netflix.
The Paramount officials made the claim in response to a formal rejection of its offer by WBD officials earlier this week.
“Paramount’s offer is superior to WBD’s existing agreement with Netflix and represents the best path forward for WBD shareholders,” Paramount said in a news release.
“Netflix’s transaction, on the other hand, contains multiple uncertain components and has already decreased in total value,” Paramount said.
“When announced in December, the Netflix transaction offered WBD shareholders $23.25 in cash, $4.50 in Netflix stock and a share in the pending spin-off of Discovery Global,” Paramount added.
“Today, Netflix’s stock price is trading well beneath the low end of its collar, reducing the value offered to WBD shareholders.”
Paramount’s offer includes a guarantee from Larry Ellison, who is the majority shareholder of Paramount’s parent corporation, National Amusements Inc.
WBD officials say the Netflix offer would benefit shareholders the most, CNN reported, but Paramount Skydance might up its offer.
WBD on Wednesday said the Paramount Skydance offer is “inadequate” and “poses materially more risk for WBD and its shareholder” if that offer were to fall through, while the Netflix offer is more certain.
Paramount Skydance Chief Executive Officer David Ellison countered WBD’s comment, saying “our offer clearly provides WDB investors greater value and a more certain, expedited path to completion.”
Paramount and Netflix officials are embroiled in a de facto bidding war for WBD and HBO, which earlier accepted an initial offer from Netflix before Paramount Skydance made its competing offer.
As the impasse continues, Paramount Skydance officials are offering WBD shareholders $30 per share if they reject the WBD board of directors’ advice to stick with the Netflix offer.