"Netflix reached a $72 billion takeover deal with Warner Bros. on Friday but Paramount said it would be approaching shareholders with a bid worth around $74.4 billion, or $30 per share in cash. What's more, unlike Netflix, Paramount says it is also offering to buy the cable assets of Warner Bros., and asking shareholders to reject the Netflix bid which it says is based on an "illusory prospective valuation" of those assets."
"Paramount criticized the Netflix offer, saying it "exposes WBD shareholders to a protracted multi-jurisdictional regulatory clearance process with an uncertain outcome along with a complex and volatile mix of equity and cash." Paramount said it had submitted six proposals to WBD over a 12-week period. "We believe our offer will create a stronger Hollywood. It is in the best interests of the creative community, consumers and the movie theater industry," Paramount Chairman and CEO David Ellison said in a statement."
"US President Donald Trump also said Sunday that the Netflix deal "could be a problem" because of the size of the combined market share. The president added that he would be personally involved in the federal government's decision to approve the bid or not. Given Trump's personal ties to Paramount — CEO Ellison is the son of longtime Trump supporter Larry Ellison, the world's second-richest person — the president's skepticism regarding the Netflix was understandable."
Paramount announced a hostile bid of about $74.4 billion in cash, or $30 per share, to acquire Warner Bros., including its cable assets. Paramount urges shareholders to reject Netflix's $72 billion offer, calling Netflix's valuation of the cable assets "illusory" and warning that the Netflix deal exposes shareholders to prolonged, uncertain multi-jurisdictional regulatory review and a complex mix of equity and cash. Paramount said it submitted six proposals over 12 weeks and argued the offer would boost competition, content spending, theatrical releases and the broader movie-theater ecosystem. President Trump signaled potential scrutiny and personal involvement in any approval decision.
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