Paramount Skydance CEO says their offer to Warner Bros. Discovery is superior for shareholders

Core Viewpoint - The proposed deal involving Paramount is positioned as a superior offer for shareholders, emphasizing the potential for significant synergies and competitive advantages in the streaming market [2][5][6]. Financial Aspects - The combined business is projected to generate approximately $70 billion in top-line revenue, with an EBITDA of $16 billion and $10 billion in cash flow [5][6]. - The offer includes $30 in cash per share, which is higher than the current market valuation of $23 [7]. Competitive Landscape - The merger is framed as a necessary move to create a stronger competitor against major players like Netflix, Amazon, and Disney, while arguing that the current market dynamics are anti-competitive [6][10][14]. - The argument against the merger is that it would reduce competition in Hollywood, with concerns that it would lead to a monopolistic environment [10][14]. Strategic Positioning - The company asserts that it has a viable standalone business plan but believes that the merger represents the highest value for shareholders [7][9]. - The largest shareholder, the Ellison family, is also the largest investor in the deal, indicating strong internal support for the merger [4]. Industry Implications - The deal is described as existential for the business, with a belief that failure to proceed could hinder the company's ability to compete effectively in the evolving media landscape [8][14]. - The narrative emphasizes that the merger would be beneficial not only for the companies involved but also for the broader Hollywood ecosystem and consumers [14].