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Paramount has launched a hostile bid warner brothers Discovery is trying to derail the firm’s agreed $72bn (£54bn) deal Netflix,
Paramount said it is offering $30 (£22.50) per share in cash for all of Warner Bros. and will take the bid directly to investors, asking them to reject the deal with Netflix.
Paramount’s offer values Warner Bros. at $108.4 billion (£81.3 billion) including debt, which is higher than Netflix’s $27.75 (£20.81) per share offer, which values Warner Bros. at $72 billion (£54 billion), or $82.7 billion (£62 billion) including debt.
US streaming giant Netflix said last Friday it has agreed to buy Warner Bros.’s Discovery film and TV studios business, in a move that could dramatically reshape the established. Hollywood Film and TV Industry.
It followed an auction process in which Paramount and Sky owner Comcast lost out to Netflix, which owns HBO, streaming service HBO Max, and the franchise. harry potter And Batman.
But the American President donald trump Sunday said Warner Bros.’ Netflix acquisition “could be a problem” due to combined market share.
Mr Trump confirmed that he would be involved in the decision on whether the US federal government should approve the acquisition.
Paramount chairman and chief executive David Ellison said Warner Bros. investors “deserve an opportunity” to consider the firm’s offer.
He said: “Our public offer, which is on the same terms that we privately offered to the board of directors of Warner Bros. Discovery, offers better value and a more certain and accelerated path to completion.
“We believe the Warner Bros. board of directors is pursuing a poor proposal that exposes shareholders to a mix of cash and stock, the uncertain future business value of the Global Networks linear cable business, and a challenging regulatory approval process.
“We are taking our offer directly to shareholders to give them the opportunity to act in their best interests and maximize the value of their shares.”
Paramount said it approached Warner Bros. about an acquisition six times in 12 weeks, but claimed that Warner Bros. “never got meaningfully involved”.
Mr Ellison said: “We are confident that our proposal will create a stronger Hollywood.
“This is in the best interests of the creative community, consumers and the movie theater industry.”
Netflix has said its agreed acquisition will close after Warner Bros. Discovery completes the proposed spin-off of its cable channels, which include CNN, TBS and TNT Sports in the UK.
As a result, the process is not expected to be completed until at least the third quarter of next year, although it is also expected to clear regulatory hurdles in the US and Europe.
Asked about the sale to Netflix, Mr Trump said: “There’s no question about it. It could be a problem.”
He said the deal would have to “go through a process and we’ll see what happens”.
American unions the Writers Guild of America West and the Writers Guild of America East have also called for blocking the merger of Netflix and Warner Bros., claiming it would eliminate jobs, lower wages, and worsen conditions for entertainment workers.