New York Post·2025-12-14 00:59Core Viewpoint - Paramount Skydance is attempting to acquire Warner Bros. Discovery (WBD) through a $30-a-share cash bid, which has been rejected in favor of a $27.75-a-share offer from Netflix, leading to a hostile appeal to shareholders by the Ellisons [2][4]. Group 1: Bid Details - The Ellisons' bid for WBD is positioned as superior, claiming that their offer effectively values the company at $30.75 per share when including the sale of cable properties [2]. - The Netflix deal has been criticized by the Ellisons as risky, particularly regarding regulatory concerns and the optimistic valuation of cable assets like CNN, which they believe is worth less than implied [3][7]. Group 2: Financing Concerns - Larry Ellison is reportedly contributing $12 billion to the bid, which is less than 5% of his net worth of $243 billion, raising questions about the financial backing of the proposal [4][5]. - In contrast, Middle Eastern sovereign wealth funds have pledged double that amount, which has sparked concerns about foreign influence over U.S. media assets [5][12]. Group 3: Shareholder Engagement - The Ellisons are directly appealing to WBD shareholders, arguing that their offer was not given a fair hearing by the WBD board and that the spun-out cable assets are overvalued [7][11]. - Notable investors, including media investor Mario Gabelli, have pledged their shares to the Ellisons, indicating support for the cash component of the bid despite the source of funding [12][13]. Group 4: Market Reaction - Since the beginning of the bidding war, shares of WBD have increased by 150%, reflecting investor interest despite the ongoing conflict between the bidding parties [17].