Posted on 12/09/2025 10:41:34 AM PST by SeekAndFind
Paramount has officially launched a tender offer for current WBD shares at $30 per share, all cash. That bid is backed by $41 billion in equity financing. The remainder will be money from RedBird Capital and Jared Kushner’s Affinity Partners. Paramount also has $54 billion in debt commitments from Bank of America, Citi and Apollo Global Management.
Paramount’s tender offer will be open for 20 business days, Paramount Chief Strategy Officer Andy Gordon said during a conference call for investors Monday. Warner Bros. Discovery has 10 days to respond, and after the 20 business days are up, Paramount has the option to extend the deadline to keep the offer open for WBD shareholders, Gordon said.
During this time, any shareholder of WBD can sell its shares to Paramount for $30. If Paramount buys 51% of outstanding shares, it would control the company.
“We do believe the [Paramount] offer should garner meaningful traction,” Raymond James equity analyst Ric Prentiss wrote in a note to clients. “That said, we believe that Netflix is committed to this deal; if [Paramount] seems to be gaining traction, we would not be surprised to see a reaction.”
That reaction could come in the form of an increased Netflix offer, though Netflix co-CEO Ted Sarandos didn’t mention as much when speaking Monday at the UBS Global Media and Communications Conference.
A prolonged battle could eventually invite lawsuits or proxy fights that would demand full shareholder votes.
The WBD board said in a statement Monday it “is not modifying its recommendation with respect to the agreement with Netflix.” It advised shareholders “not to take any action at this time with respect to Paramount Skydance’s proposal.”
Still, the board will “carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix,”
(Excerpt) Read more at cnbc.com ...
The board’s gotta be worried about derivative suits if they pass up what seems to be a better offer
I think Warner Bros/Discovery can get more, in total, going with the Netflix deal. They are getting a great offer from Netflix for only the Warner Bros part of the company. If approved, they will, prior to the acquisition date with Netflix, spin off and sell off the rest of the company. With the Netflix deal the shareholders not only get what Netflix is offering for just Warner Bros, they get the per-share distribution from the separate sale of the Discovery part of the company.
Either way, Warner brothers is doomed.
I am trying to understand Netflix’s motivations. If it rolls HBO into Netflix, are they thinking they can say charge $4 more per month for current subscribers? Or will they continue to run it outside of Netflix?
I’ve been pondering Netflix’s motivations myself. I wonder if this deal enables them to get their product into theaters. I wonder if that’s what has the industry’s collective panties in such a wad.
Agreed.
CNN is one of the big assets in the remnant that Netflix won’t buy
Do you really think a package w CNN in it is worth $2 billom?
All this fighting and drama over who owns what entertainment. Not something essential such as automobiles or rare earths for magnets.
Back in 1988 when Japan was a monster competitor. A top Japanese executive was quoted — “The United States is an entrainment nation”
Yes, the net market value of CNN is likely about $2 billion, down considerably from earlier valuations of twice as much.
But in addition to CNN Discovery has a stable of a bunch of cable channels.
I think Discovery + CNN spun off and sold off separately would more than make up for the difference between the Netflix offer and the Paramount offer. And there is a chance we could get a less Leftie CNN as a result.
Just guessing but in the past similar deals were about gaining rights to movies and shows.
Netflix already puts stuff in theaters when they want to. Primarily they treat is as a way to make their movies Oscar eligible, and “advertising” for the service. Usually very short runs, 1 or 2 weeks very few theaters.
the big thing they gain is the content. They already have a deal with HBO and put a lot of HBO on Netflix. But it’s generally older stuff, not the hot new stuff. And of course they pay a good chunk of money for that deal. If they buy it they get it all. And of course remember WB is a media empire. They own DC comics, books, music. The WB music library alone would put them in a good spot to start competing with Spotify.
$2 billion for CNN? doubtful
No, the shareholders would be wise to take the offer from conservative-owned Paramount and put the whole matter behind them
Very few want legacy cable network assets
As for CNN, ratings are in a nosedive, and they are almost certainly losing money. Revenue has plunged. Viewership has vanished.
Can you name the entity that will buy CNN and the other legacy cable outlets standalone? No one has emerged.
Plus, the problem with your theory: No one has stepped up that is willing to buy the CNN and cable remnant part of the assets.
Paramount offers to take the entire steaming pile of manure off the hand of Warner shareholders. Netflix doesn’t want the whole thing, certainly doesn’t want CNN.
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