Paramount Renewed Bid for Warner Bros, Ensuring $40B Larry Ellison Backing
However, the war for the future of Warner Brothers continues, as Paramount Skydance announced Monday an amended all-cash offer for the legacy movie studio.
Moreover, the offer includes an “irrevocable personal guarantee” from a major backer, Oracle billionaire Larry Ellison, to provide tens of billions in equity financing for the deal.
Consequently, it’s the latest move by Ellison’s son, David Ellison — the CEO of Paramount Skydance — to pry the potential acquisition loose from his competition, the streaming giant Netflix.
Paramount’s Amended Offer
Meanwhile, the proposed equity financing had previously been included in Paramount’s offer, but the elder Ellison’s “personal guarantee” is new, the press release states.
Therefore, the revamped offer comes a mere week after the WBD board rejected Paramount’s initial bid, favoring, instead, a previous deal with Netflix.
In addition, that deal was announced on December 5, outlining how the streamer would purchase the movie studio via a cash and stock option valued at $27.75 per WBD share, and a total enterprise value of $82.7 billion.
Paramount’s Commitment to Acquiring WBD
However, Paramount has repeatedly demonstrated its commitment to acquiring WBD, said Paramount Skydance CEO David Ellison, in Monday’s press release.
Therefore, the company’s $30 per share, fully financed all-cash offer was on December 4, and continues to be, the superior option to maximize value for WBD shareholders.
Consequently, the acquisition will be superior for all WBD stakeholders, as a catalyst for greater content production, greater theatrical output, and more consumer choice.
Warner Bros. Discovery’s Response
Meanwhile, TechCrunch reached out to Warner Bros. Discovery for comment, but no response was received.
However, the company has previously rejected three different takeover offers from Paramount.
Therefore, it remains to be seen how the WBD board will respond to Paramount’s amended offer.
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