The board of Warner Bros Discovery (WBD) has urged its shareholders to reject an amended hostile bid by Paramount Skydance while maintaining its unanimous support for a rival offer by Netflix.A letter to investors said the updated $108.4bn all-cash offer from Paramount, for the whole business, involved an "extraordinary amount of debt financing" that represented a risk to any deal completing. Paramount's bid was hostile, through a direct approach to WBD's shareholders, as the board had already thrown its we ...

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Core Viewpoint - Paramount Skydance is making a $30 per share cash offer for Warner Bros. Discovery, backed by billionaire Larry Ellison's personal guarantee of $40.4 billion in equity financing, amidst competition from Netflix's agreement to acquire WBD's assets valued at approximately $83 billion [1][2][4]. Group 1 - Paramount Skydance's offer for Warner Bros. Discovery is $30 per share in cash, which is positioned as a hostile bid to rival Netflix's agreement [3]. - The enterprise value of Paramount's offer for WBD is stated to be $108.4 billion, which includes the entirety of WBD's assets, including its TV networks [4]. - Larry Ellison has provided an irrevocable personal guarantee for the equity financing and any damages claims against Paramount, ensuring the backing for the offer [2]. Group 2 - Warner Bros. Discovery has previously agreed to sell its studio and streaming assets to Netflix, raising concerns about the financial backing of Paramount's bid [4]. - WBD's chairman expressed doubts regarding the reliability of Larry Ellison's backing, emphasizing the importance of closing the deal rather than just making an agreement [5]. - Paramount has increased its proposed reverse breakup fee to match that of Netflix's offer, indicating a strategic move to strengthen its bid [3].

Warner Bros Discovery is poised to tell shareholders to reject Paramount’s $108bn (£81bn) hostile bid, according to reports, clearing the way for Netflix to proceed with its buyout of the Hollywood film and TV group.The board could announce a decision as early as Wednesday after Paramount Skydance – run by David Ellison and bankrolled by his billionaire father, Larry, who founded Oracle – went directly to shareholders with its rival offer almost two weeks ago.Netflix had won the auction for the studio and s ...

Core Viewpoint - Warner Bros. Discovery Inc. is expected to reject Paramount Skydance Corp.'s hostile takeover bid of $108.4 billion due to concerns over financing and other terms [1][2]. Group 1: Warner Bros. Discovery's Response - The board of Warner Bros. Discovery is likely to formally reject Paramount's offer as early as Wednesday and may encourage shareholders to vote against the takeover [2]. - Warner Bros. Discovery's board believes that Netflix's earlier bid is more favorable compared to Paramount's offer [3]. Group 2: Competitive Landscape - Netflix was the first to propose an acquisition of Warner Bros. Discovery, offering $27 in cash and stock for non-cable assets, which was followed by Paramount's larger all-cash bid of $30 per share [5][6]. - The winner of the acquisition will gain access to a significant portfolio of content, including classic films and popular series, which is crucial in the competitive streaming market [4][5]. Group 3: Financing Details - Paramount's $108.4 billion bid is now supported by $41 billion in new equity from the Ellison family and RedBird Capital, along with $54 billion in debt commitments from financial institutions such as Bank of America, Citi, and Apollo [8].

Core Viewpoint - The acquisition of Warner Bros. by Netflix, valued at $83 billion, is presented as a positive development for the entertainment industry, despite skepticism from Wall Street and a decline in Netflix's stock price by 10% since the proposal was announced [1][2] Company Perspective - Netflix Co-CEOs emphasize that the merger will enhance consumer choice and value, leveraging Warner Bros.'s extensive portfolio and capabilities without causing overlap or studio closures [6][12] - The company is confident in obtaining regulatory approval for the deal, asserting that it is pro-consumer, pro-innovation, and pro-growth [10][11] Competitive Landscape - MoffettNathanson analyst Robert Fishman suggests that Netflix should avoid escalating the bidding war with Paramount, which has made a $108 billion cash offer for Warner Bros. Discovery, including debt assumption [3][4] - Fishman notes that a combined Paramount-Warner Bros. entity would create a significant competitor in the streaming market, potentially rivaling Disney and Amazon [5] Market Reactions - Investors have reacted negatively to the acquisition news, with Netflix shares dropping significantly since the announcement [1] - Paramount is expected to increase its bid for Warner Bros., which could pressure Netflix to reassess its strategy [4][5]

Paramount's $30 all-cash offer provides greater value and certainty to WBD shareholders December 8, 2025 Disclaimer This presentation is provided for informational purposes only and for no other purpose. Certain information contained herein has been obtained from published sources prepared by third parties that Paramount Skydance Corporation ("Paramount") believes to be reliable. Moreover, certain information in this presentation is based on assumptions, estimates and other factors that were available to Pa ...

Core Viewpoint - Netflix has announced a significant acquisition deal worth $82.7 billion for parts of Warner Brothers Discovery, which will be financed through $59 billion in debt, raising questions about the potential return on investment for Netflix shareholders [3][4][5]. Acquisition Details - The deal will provide Warner Bros. Discovery shareholders with $27.75 per share, comprising $23.25 in cash and $4.50 in Netflix stock [3]. - Netflix views this acquisition as a "rare" opportunity to enhance its content library and production capabilities, particularly with the inclusion of HBO Max [4][7]. - The acquisition excludes WBD's TV and network operations, focusing instead on the film and TV studio business [4]. Financial Implications - The total bid of $82.7 billion includes $72 billion in stock and cash, along with the assumption of approximately $10.7 billion in WBD debt, which is more than double WBD's market capitalization of $30 billion prior to deal speculation [9]. - Netflix anticipates annual cost savings of $2 billion to $3 billion by the third year post-acquisition and expects the transaction to positively impact earnings per share by the second year [12]. Risks and Challenges - The deal faces significant regulatory scrutiny, with potential antitrust concerns due to the combined market share of Netflix and HBO, which could exceed 45% globally [11][25]. - High financial burdens are associated with the deal, including a potential $5.8 billion breakup fee if the acquisition does not proceed, and an estimated $2.65 billion in annual interest expenses from the new debt [11]. - Cultural differences between Netflix's data-driven approach and Warner Bros.' traditional studio system may hinder integration and synergy realization [10][18]. Market Reactions and Analyst Opinions - Analysts express skepticism regarding the benefits of the acquisition, suggesting that Netflix shareholders may be worse off in the long run compared to if the deal had not occurred [13][14]. - There are three potential scenarios for the deal's outcome: regulatory rejection, disappointing results post-completion, or successful integration leading to market dominance [15][17][20]. - Industry stakeholders, including movie theater owners and writers, have voiced opposition to the deal, citing concerns over job losses and reduced competition in the market [22][24].

Core Viewpoint - Netflix plans to acquire part of Warner Bros. Discovery in a $72 billion deal, which could significantly impact the entertainment industry, particularly streaming services [1][4]. Company Overview - The acquisition will include Warner Bros. Discovery's film and TV studios, HBO, and HBO Max, potentially combining over 400 million streaming subscribers and a vast content library [1][5]. - Netflix and HBO platforms will operate separately, but the merger could allow for a diverse range of content, including Netflix's hits and Warner Bros. classics [2][9]. Market Impact - The deal is expected to close after Warner Bros. spins off its Discovery Global business in Q3 2026, raising antitrust concerns [4][16]. - Netflix and HBO Max are currently the No. 1 and No. 4 streaming services globally, with approximately 300 million and 130 million subscribers, respectively [5][12]. Consumer Value - Netflix executives claim the deal will enhance consumer choice and value, providing subscribers with a broader selection of titles, although subscription price changes remain unclear [6][8]. - There is speculation that Netflix may adopt a bundling strategy similar to Disney, offering combined subscriptions for Netflix and HBO Max [8]. Competitive Landscape - The acquisition will allow Netflix to leverage Warner Bros.'s brands and properties, such as DC Comics and major franchises, to better compete with other industry giants like Disney [9][12]. - Paramount has expressed concerns about the merger, arguing it could reduce competition and has engaged with lawmakers to challenge the deal [12][15]. Regulatory Scrutiny - The deal is anticipated to face intense regulatory scrutiny from U.S. and international officials, with discussions already taking place at the White House regarding antitrust implications [12][16]. - Filmmakers have raised alarms about the potential impact on the theatrical marketplace, suggesting that the merger could stifle competition in Hollywood [17].

Netflix has agreed to buy Warner Bros Discovery in an $82.7bn (£62bn) deal that will dramatically reshape the established Hollywood film and TV industry.The streaming company will take control of prize assets including Warner Bros, the studio behind franchises including Harry Potter, Superman and Batman, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession.Netflix will also get hold of an extensive TV archive that includes classics such as Friends, which is scheduled to be ...