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The Paramount Skydance (PSKY) launched an all-cash tender offer to acquire Warner Bros Discovery (WBD) for $30 per share.
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The proposed deal values WBD at $108.4 billion.
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The offer covers 100% of WBD, including its global networks segment.
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Paramount has taken the offer directly to WBD shareholders.
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Equity financing will be backstopped by the Ellison Family and RedBird Capital, with additional debt fully committed by Bank of America, Citi, and Apollo.
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Paramount argues the Netflix transaction provides WBD shareholders with inferior and uncertain value.
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The offer is not subject to any financing conditions.
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Paramount will submit a premerger notification filing today under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
David Ellison (CEO of Paramount Skydance) is on CNBC touting his offer in relation to Netflix saying that the all-cash is a game changer.
- Says that he believes Pres. Trump is in favor of competitiveness
- if this deal is aloowed to pass it is anticompetitive and horrible for Hollywood
- We believe that what we offer is better for Hollywood and better for the customers
- Absolutely it would be beneficial for Hollywood.
- We will bring 30 movies per year to the big screen.
- This deal if it moves forward would be the death of movies in theaters.
- Our deal is a faster and superior path to close.
- Reiterates that the proposals is backstopped by Ellison family, Redbird capital.
- New deal addresses all the issues that Warner Bros. asked for.
- We believe there has been an inherent bias in the decision at Warner Bros.
- Says we did not hear back from Warner Bros.
Looking at the respective stocks in premarket trading :
- Warner Bros. discovery shares are up 6.21% and $27.70
- Netflix shares are near unchanged at $100.27.
- Paramount Skydance shares are currently up 5.09% at $14.05.
This story will one day be a movie. Will it be released on Netflix presumingly online, or Paramount Skydance in theaters?
This article was written by Greg Michalowski at investinglive.com.