"Paramount argued its offer to WBD shareholders provides a superior alternative to the Netflix transaction, which offers "inferior and uncertain value and exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome," referring to the likely antitrust concerns for Netflix's mega-deal."
"Paramount argued that WBD's recommendation of the Netflix offer is based on an "illusory prospective valuation of Global Networks that is unsupported by the business fundamentals" and encumbered by high levels of financial leverage assigned to the entity."
"David Ellison, chairman and CEO of Paramount, said: "WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company.""
"Paramount, which earlier sent a letter to WBD CEO David Zaslav complaining of a "tainted" sale process, further asserted today that although Paramount made six offers for WBD over 12 weeks, "WBD never engaged meaningfully with these proposals which we belie"
Paramount launched a $30-per-share all-cash hostile bid for Warner Bros. Discovery after losing a prior bidding contest to Netflix. Netflix had offered $27.75 per share in a cash-and-stock deal for the studio and HBO Max, while Paramount's offer covers WBD in full, including Global Networks. Paramount contends the Netflix transaction offers inferior and uncertain value and exposes shareholders to a protracted multi-jurisdictional regulatory clearance process and antitrust risks. Paramount criticized WBD's recommendation as relying on an illusory valuation of Global Networks and highlighted Netflix's assumption of $11 billion of debt and a $59 billion bridge loan. Paramount urged shareholders to consider the all-cash alternative.
Read at Fortune
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