Paramount Stands By Its WBD Offer Despite Board Rebuff, Warns Netflix Scenario Would Add To Linear TV Woes

Core Viewpoint - Paramount is firmly supporting its proposal to acquire Warner Bros. Discovery (WBD), cautioning shareholders against accepting Netflix's offer, which it claims would leave them with a "heavily indebted, sub-scale linear business" [1] Group 1: Acquisition Proposals - Paramount made a hostile bid to acquire WBD for $108 billion, including debt, while Netflix's offer is for nearly $83 billion, focusing only on the Warner studio and streaming division [2] - Paramount is willing to take on the troubled cable network side of WBD, which has been a significant point of contention in the valuation of the bids [3] Group 2: Financial Assurance and Strategy - Paramount asserts that its bid offers "100% cash" with no exposure to equity market fluctuations, contrasting with Netflix's proposal that includes stock, which has already seen a decline [4] - The financing for Paramount's offer includes $41 billion in new equity backed by the Ellison family and RedBird Capital, along with $54 billion in debt commitments from major banks [4] Group 3: Competitive Positioning - Paramount claims its acquisition would enhance competition in the creative industries, opposing the notion that Netflix's deal would create a dominant streaming monopoly [4] - The company emphasizes that it has received positive feedback from WBD shareholders regarding its offer, which it believes is superior in value and certainty [4] Group 4: Market Reaction - Following the announcement, Paramount's shares fell by 5% in early trading [4]