UPDATE: In a bold move that could reshape the media landscape, Paramount CEO David Ellison has launched a hostile bid for Warner Bros. Discovery (WBD), offering $30 per share. Ellison acknowledges that WBD’s board is unlikely to accept this offer, stating, “If they accept the offer exactly as it is today, they’re admitting breach of fiduciary duty.”
This explosive development follows WBD’s recent acceptance of a $27.75 per share offer from Netflix for its studio and streaming assets, highlighting an escalating bidding war in the industry. Ellison’s remarks were made during the UBS media event on Tuesday, where he further emphasized that Paramount’s offer remains unchanged from a previous private proposal made just days earlier.
WBD has officially stated that its board will “carefully review and consider Paramount Skydance’s offer” while adhering to fiduciary duties with the help of independent financial and legal advisors. This puts tremendous pressure on WBD’s decision-makers, tasked with acting in the best interests of their shareholders, after previously deeming Paramount’s offer insufficient.
Ellison hinted that he might be willing to revise the offer to make it more appealing. He believes Paramount’s bid is “by far the superior offer” compared to Netflix’s, indicating that he sees potential for a counter-offer. In a significant revelation, an SEC filing disclosed that Ellison texted WBD CEO David Zaslav, stating, “Please note importantly we did not include ‘best and final’ in our bid,” suggesting flexibility in negotiations.
Industry insiders are buzzing with speculation about the outcome of this bidding war, comparing it to the fierce competition between Disney and Comcast for Fox’s studio assets. Kevin Mayer, Disney’s former top dealmaker, remarked, “I would be very surprised if we don’t see a sweetened, and perhaps meaningfully sweetened, offer,” further fueling anticipation for potential developments.
As this story unfolds, the ramifications for both Paramount and WBD could be substantial, affecting not just shareholders but also viewers and content creators across the industry. The stakes are incredibly high, and all eyes will be on how WBD’s board responds to this aggressive overture.
Stay tuned for updates as this urgent situation develops. The media world is watching closely, and the next moves by both Paramount and WBD could redefine the competitive landscape in entertainment.
