Paramount Pictures studio lot at 5555 Melrose Ave. on June 5, 2024, in Hollywood. Paramount Skydance detailed its plans to save $6 billion, including job cuts, should Paramount succeed in its bid to buy the larger Warner Bros. Discovery. (Brian van der Brug / Los Angeles Times) Many in Hollywood fear Warner Bros. Discovery's sale will trigger steep job losses — at a time when the industry already has been ravaged by dramatic downsizing and the flight of productions from Los Angeles. David Ellison's Paramo ...

The Warner Bros. studio in Burbank is shown. Netflix has amended its offer to buy the studio to all cash at $27.75 per share, countering Paramount's $30-per-share bid. (Myung J. Chun / Los Angeles Times) Netflix has amended its proposed $72-billion purchase of Warner Bros. and HBO, converting it to an all-cash offer in hopes of defusing criticisms from rival bidder, David Ellison's Paramount. Netflix and Warner Bros. Discovery approved the change Monday, according to a regulatory filing. Warner board mem ...

Core Viewpoint - Paramount Skydance is actively opposing Warner Bros Discovery's (WBD) deal with Netflix, planning to nominate directors to the board and seeking financial disclosures related to the $82.7 billion agreement [1][3]. Group 1: Paramount's Actions - Paramount intends to nominate directors for WBD's board at the upcoming annual meeting to challenge the Netflix deal, which was agreed upon in December [1]. - The company has filed a lawsuit for the disclosure of financial information regarding WBD's global networks operation, which includes CNN and Cartoon Network, to enable shareholders to make informed decisions [3]. - Paramount plans to propose an amendment to WBD's bylaws requiring shareholder approval for the spin-off of the global networks business [5]. Group 2: Financial Aspects - Paramount's takeover bid for WBD is valued at $108.4 billion, supported by a $40 billion personal guarantee from Larry Ellison [2]. - The Netflix deal offers WBD shareholders $23.25 per share in cash, stock, and equity in the global networks spin-off, which Paramount values at zero [5]. - Paramount argues that its cash offer of $30 per share, which includes the purchase of global networks, is a superior deal for WBD shareholders [6]. Group 3: WBD's Position - WBD's board has previously advised shareholders to reject Paramount's $108.4 billion hostile takeover bid, labeling it as "inadequate" [7]. - Accepting Paramount's deal would incur $4.7 billion in costs for WBD, including breakup fees and additional interest on debt [8].

Core Viewpoint - Paramount Skydance Corp. has reaffirmed its $30-a-share bid for Warner Bros. Discovery Inc., claiming it is superior to Netflix's offer due to concerns over the value of a cable-TV spinoff associated with Netflix's deal [1][3]. Group 1: Paramount's Offer - Paramount asserts that its offer represents the best path forward for Warner Bros. shareholders and has addressed all concerns raised by Warner Bros., including providing a personal guarantee by billionaire Larry Ellison for $40.4 billion in equity financing [2]. - Paramount argues that the poor market performance of Versant Media Group Inc., a cable network spinoff from Comcast, indicates that Warner Bros. investors would fare worse with the Netflix deal, as Versant shares have dropped about 26% shortly after trading began [4][5]. Group 2: Warner Bros. Response - Warner Bros. has rejected Paramount's amended takeover offer, expressing skepticism about the deal's financing and the substantial debt it would incur, stating doubts about Paramount's ability to close the deal compared to Netflix's offer of $27.75 per share in cash and stock [6]. - The Warner Bros. board has communicated to shareholders that Paramount's proposal carries significant risks and uncertainties [6]. Group 3: Industry Context - The ongoing competition between Paramount and Netflix for control of Warner Bros. highlights the challenges faced by traditional cable networks, as viewership and advertising revenues decline in favor of streaming services [3][7].

Core Viewpoint - Warner Bros is poised to reject a hostile $108 billion takeover bid from Paramount, as one of Paramount's financing partners has withdrawn from the offer, indicating a significant change in investment dynamics [1][2]. Group 1: Takeover Dynamics - The Warner Bros Discovery board is expected to advise shareholders to reject Paramount's bid, which would allow Netflix to proceed with its $72 billion deal [2]. - Paramount's offer includes a cash payment of $30 per share, which is $18 billion more than Netflix's offer, and is made directly to shareholders in a hostile takeover attempt [8]. Group 2: Strategic Implications - The outcome of the takeover battle is crucial for gaining a competitive edge in the streaming wars, with Warner Bros planning to split into two companies to better manage its assets [5]. - If Paramount's bid succeeds, it would consolidate CBS and CNN under the same parent company, further reshaping the media landscape [8]. Group 3: Financial Details - Netflix's agreement is priced at $27.75 per share, totaling $72 billion, with the overall asset value reaching $82.7 billion [6]. - The involvement of significant financial backers, including funds from Saudi Arabia and other Middle Eastern countries, highlights the international stakes in this acquisition [1]. Group 4: Regulatory Considerations - The final decision on the takeover will involve scrutiny from the U.S. Department of Justice's Antitrust Division, which oversees business deals to ensure fair competition [11].

Core Viewpoint - The competition between Netflix Inc. and Paramount Skydance Corp. for Warner Bros. Discovery Inc. highlights the contrasting valuations of struggling cable TV networks and the strategic importance of a strong content library in the streaming industry [1][7]. Bidding Details - Paramount has initiated a bidding war with a $30-per-share all-cash offer, valuing Warner Bros. at $108.4 billion, including debt, aiming to counter Netflix's previously announced offer of $27.75 per share [2]. - The $2.25 difference in share price between the two offers is attributed to the inclusion of struggling cable channels in Paramount's bid, which Netflix's offer excludes [3]. Financial Backing - Paramount's bid is supported by $11.8 billion from CEO David Ellison's family and $24 billion from Middle Eastern sovereign wealth funds, with additional participation from RedBird Capital Partners and Affinity Partners [4]. Potential for Increased Bids - Paramount's banker indicated that the $30-per-share offer is not the final proposal, suggesting the possibility of higher bids [5]. Netflix's Position - Netflix has the option to match Paramount's offer if deemed superior by Warner Bros., and its executives expressed confidence in the approval of their deal [6]. Importance of Content - The acquisition of Warner Bros. would significantly enhance Paramount's streaming service, which currently has about 80 million subscribers, by adding valuable titles like Game of Thrones and Batman [7]. - For Netflix, acquiring Warner Bros. would further solidify its lead in the streaming market, reaching over 300 million households globally [8]. Cable TV Industry Challenges - The cable TV business is facing significant declines, with Warner Bros. planning to spin off its pay-TV networks by 2026, reflecting broader industry trends [9]. - Warner Bros.' cable audience dropped 26% in Q3, with a revenue decline of 5% to $20.2 billion last year [12]. Valuation of Cable Channels - Analysts estimate the value of Warner Bros.' cable channels, which are set to be spun off, to be between $2 to $4 per share, potentially influencing the bidding dynamics [10][13]. Regulatory Considerations - Regulatory approval is a critical factor in determining the success of either bid, with concerns raised about antitrust issues related to Netflix's offer [13][14].

Core Points - Paramount Skydance has launched a $108 billion attempt to counter Netflix's recent $83 billion acquisition of Warner Bros. Discovery, which includes valuable franchises like Harry Potter and Batman [1][2] - Paramount's offer of $30 per share is presented as superior, providing $18 billion more in cash than Netflix's mixed cash and share deal, and covers the entirety of Warner Bros. Discovery, including its TV networks [3][2] - Donald Trump has publicly criticized Paramount and its owners, suggesting that his influence could impact the approval of Netflix's takeover due to concerns over market share [7][6] Group 1 - Paramount's hostile takeover bid aims to thwart Netflix's acquisition of Warner Bros. Discovery [2][1] - The bid is positioned as financially advantageous for shareholders compared to Netflix's offer [3][2] - Trump's criticism of Paramount coincides with its takeover attempt, indicating potential political implications for the merger [4][5] Group 2 - Trump's involvement in media mergers has raised concerns about personal grievances influencing corporate decisions [8][6] - The merger between Netflix and Warner Bros. Discovery could significantly alter the competitive landscape in the media industry [7][6] - Paramount's strategy reflects a broader trend of consolidation in the entertainment sector as companies vie for control over popular content [2][3]

Core Viewpoint - Paramount Skydance has launched a hostile bid to acquire Warner Bros. Discovery (WBD) with an all-cash offer of $30 per share, which WBD previously rejected, amid concerns regarding Netflix's $72 billion acquisition of WBD's studio and streaming business [1][5][12]. Group 1: Acquisition Details - Paramount's offer is supported by equity from the Ellison family and RedBird Capital, along with debt financing from Bank of America, Citi, and Apollo [2]. - The Netflix deal, valued at $82.7 billion including debt, aims to create a significant entity in Hollywood, combining over 400 million streaming subscribers from Netflix and HBO Max [5]. - Paramount argues that its bid offers superior value and a quicker path to completion for WBD shareholders [4]. Group 2: Regulatory Concerns - President Trump has indicated that the Netflix-WBD deal could face antitrust scrutiny, stating he will be involved in the approval process [6][7]. - The Netflix acquisition does not require FCC approval as it excludes broadcast stations, but it is likely to face intense scrutiny from the US Department of Justice and other global regulators [8]. - Senior White House officials have already discussed antitrust concerns regarding the potential merger between WBD and Netflix [14]. Group 3: Market Reactions and Implications - Senator Elizabeth Warren has labeled the Netflix-WBD deal an "anti-monopoly nightmare," reflecting broader concerns in the industry [15]. - Netflix has committed to continuing theatrical releases for WBD films, marking a significant shift for the streaming service [17]. - The acquisition follows a recent $8.4 billion merger between Skydance Media and Paramount Global, which faced its own antitrust and political challenges [18].

Core Viewpoint - Paramount is making a $78 billion hostile takeover bid for Warner Bros. Discovery after being outbid by Netflix, which has offered $82.7 billion for the company, including debt [6][4]. Group 1: Paramount's Offer - Paramount's final bid was increased to $30 per share, representing a 139% premium over Warner's stock price of $12.54 on September 10 [14]. - The total enterprise value of Paramount's offer, including Warner's cable channels and debt, would be approximately $108.4 billion [14]. - Paramount's bid is backed by significant financial commitments, including $11.8 billion from Larry Ellison's family and $24 billion from Middle Eastern sovereign wealth funds [17][18]. Group 2: Netflix's Position - Netflix's offer includes a cash and stock deal valued at $72 billion, or $27.75 per share, and would take on over $10 billion in Warner Bros. debt [4]. - Netflix's co-CEO expressed confidence in their deal, stating it would benefit shareholders, consumers, and Hollywood workers [8]. - Concerns exist regarding regulatory approval for Netflix's acquisition due to its large market share [11][13]. Group 3: Regulatory and Market Implications - The involvement of political figures, including President Trump's family, complicates the regulatory landscape for both bids [5][19]. - Paramount is appealing directly to shareholders, bypassing Warner's board, and claims its offer is a "superior alternative" to Netflix's [7][9]. - The Warner Bros. board has expressed support for Netflix's bid, and shareholders will receive recommendations within 10 business days [6]. Group 4: Market Reactions - Following the news, shares of Warner Bros. increased by 4.4% to $27.23, while Paramount's shares rose by 9% to $14.57, and Netflix's shares fell by 3.4% to $96.79 [21].

Just to put this into context..@netflix acquired the IP rights to:> DC Universe (Batman, Superman...)> Harry Potter> Lord of the Rings> Game of Thrones (via HBO)> Succession (via HBO)> and many many more...Actually massive and makes Netflix probably the biggest IP powerhouse globally. ...