Core Viewpoint - Paramount's legal officer argues that Netflix's acquisition of Warner Bros. Discovery (WBD) assets is "presumptively unlawful," claiming it would strengthen Netflix's dominance in the streaming market [1][2] Group 1: Legal and Regulatory Context - Paramount's chief legal officer, Makan Delrahim, submitted a letter to a House Judiciary antitrust subcommittee, asserting that the Netflix-WBD combination raises antitrust concerns [1] - The letter coincided with a hearing on the streaming market, where the sale of WBD was a key topic among lawmakers and expert witnesses [1] - Delrahim criticized the broader market definition that includes platforms like YouTube and TikTok as substitutes for premium content, labeling it "tortured and absurd" [2] Group 2: Market Competition and Definitions - Delrahim contended that Netflix previously did not view YouTube as a competitor, referencing its own securities filings that compared Netflix to actual streaming competitors [2] - The outcome of the regulatory review will depend on how the government defines the competitive landscape, whether narrowly focused on subscription streaming or broadly including other platforms [1] Group 3: Transaction Details - Warner Bros. Discovery recently entered into a deal with Netflix, involving the sale of studio and streaming assets, while WBD's cable channels will be spun off into a separate entity [3] - Congressional lawmakers have oversight over the Justice Department but lack direct authority to approve or reject the transaction, which will also be reviewed by European regulators and state attorneys general [4]

(Bloomberg) — Shares of Netflix Inc. (NFLX) have tumbled since October, when the streaming giant became one of the presumed suitors for Warner Bros. Discovery Inc. (WBD) But despite a 27% plunge in less than three months, the stock still appears to be too expensive to entice investors. “Netflix is not a screaming ‘buy’ at the current price levels,” said Christopher Brown, a financial adviser in private wealth management at Synovus Securities, who added that he owns Netflix shares personally and Synovus do ...

Core Viewpoint - Paramount Skydance believes it has an advantage over Netflix in acquiring Warner Bros. Discovery (WBD), citing issues with Netflix's deal as a contributing factor to its confidence [1]. Group 1: Paramount's Position - Paramount and CBS's leadership, David and Larry Ellison, reaffirmed their commitment to a merger with WBD, offering a "hostile" bid of $30 per share, totaling $78 billion [2]. - The Ellisons argue that WBD is facing self-inflicted challenges, which have led to the rejection of their offer [2][11]. - Paramount's all-cash bid remains unchanged despite ongoing negotiations, with some investors, including Mario Gabelli, expressing preference for cash offers [12]. Group 2: WBD's Challenges - WBD criticized the Ellison's deal for relying on $85 billion in debt, labeling it a "leveraged buyout" and demanding personal guarantees from Larry Ellison [3][11]. - WBD's channels are under pressure due to cord-cutting trends, which have negatively impacted their market position [6][15]. - The launch of Versant, a spinoff from Comcast, has seen its stock drop nearly 30%, indicating market volatility in the sector [6]. Group 3: Netflix's Deal Dynamics - Netflix's offer includes $27.75 per share in cash and stock, with an additional promise of $3 per share from the planned sale of WBD's cable properties [5]. - Netflix's stock has lost over $150 billion in value recently, raising concerns among investors about the company's strategic direction [9]. - The potential merger of Netflix with WBD's HBO Max raises antitrust concerns, particularly given the relationship between Larry Ellison and regulatory figures [10].

Skydance Media CEO David Ellison attends the premiere of Netflix's "Spellbound" at the Paris Theater on Monday, Nov. 11, 2024, in New York. (Evan Agostini/Evan Agostini/Invision/AP) Paramount is staying the course on its $30-a-share bid for Warner Bros. Discovery, again appealing directly to shareholders. The move comes after Warner Bros. Discovery's board voted unanimously this week to reject Paramount's revised bid, in which billionaire Larry Ellison agreed to personally guarantee the equity portion of ...

Paramount on Thursday continued to insist it made a superior offer for Warner Bros. Discovery, compared to that of Netflix, despite pushback from the WBD board of directors. Netflix agreed last year to acquire Warner Bros. Discovery's film and television studios and streaming platform, HBO Max, in a cash-and-stock deal valued at $27.75 per Warner Bros. Discovery share. Paramount, a Skydance Corporation, then launched a hostile takeover bid for all of Warner Bros. Discovery, including cable assets that Netfl ...

How much are Warner Bros. Discovery's cable networks worth? Nothing, says Paramount Skydance, the company trying to buy them.Paramount said in a letter on Thursday that it valued WBD's cable TV networks at $0.00 per share, when including expected debt and other costs. The letter came a day after WBD rebuffed Paramount's attempted acquisition for an eighth time in favor of Netflix's offer. In the letter, Paramount acknowledged "the theoretical possibility" that WBD's cable assets "could trade with up to ~$ ...

Paramount Skydance on Thursday reaffirmed its $30-per-share cash bid for Warner Bros Discovery , reiterating that its offer is superior to the HBO Max owner's deal with Netflix. ...

Core Viewpoint - Warner Bros. has rejected Paramount's takeover bid and continues to support a rival offer from Netflix for its streaming and studio business valued at $72 billion [1][2]. Group 1: Warner Bros. and Paramount's Offers - Warner Bros. Discovery's board has determined that Paramount's $77.9 billion offer is not in the best interests of the company or its shareholders [2]. - Paramount has enhanced its offer by providing an irrevocable personal guarantee from Larry Ellison for $40.4 billion in equity financing and increased its payout to shareholders to $5.8 billion if the deal is blocked by regulators [3]. Group 2: Nature of the Offers - Netflix's acquisition proposal focuses solely on Warner's studio and streaming business, including legacy TV and movie production arms and platforms like HBO Max [4]. - In contrast, Paramount seeks to acquire the entire company, which includes networks such as CNN and Discovery in addition to the studio and streaming segments [4]. Group 3: Potential Outcomes and Regulatory Scrutiny - If Netflix's acquisition is successful, Warner's news and cable operations would be spun off into a separate company as part of a previously announced separation [5]. - Any merger with either Netflix or Paramount is expected to face significant antitrust scrutiny, likely triggering a review by the U.S. Justice Department and potential challenges from international regulators [5].

Jan. 7 (UPI) -- The board of directors at Warner Bros. Discovery announced Wednesday that it unanimously recommended shareholders reject the hostile bid by Paramount Skydance and stick with Netflix. The board said the Paramount offer was "not in the best interests of WBD and its shareholders and does not meet the criteria of a 'superior proposal' under the terms of WBD's merger with Netflix." "The board unanimously reiterates its recommendation in support of the Netflix combination and recommends that WBD ...

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 ...