"We've always been disciplined, and at the price required to match Paramount Skydance's latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid."
"The Ellison Trust is committing $45.7 billion US in equity, up from $43.6 billion US previously, backed by Larry Ellison and including any additional funds needed to satisfy Paramount's bank solvency requirements."
"Bank of America Merrill Lynch, Citi and Apollo are providing $57.5 billion US in debt financing, increased from an earlier $54 billion US commitment."
Netflix declined to match Paramount Skydance's revised $31-per-share offer for Warner Bros. Discovery's streaming and studio assets, citing financial discipline. Netflix had previously agreed to purchase the assets at $27.75 per share in December. Warner Bros. Discovery's board determined Paramount's increased bid superior to Netflix's offer. Paramount strengthened its proposal by raising the termination fee to $7 billion and increasing equity commitment to $45.7 billion through the Ellison Trust, backed by Larry Ellison. Debt financing from Bank of America Merrill Lynch, Citi, and Apollo increased to $57.5 billion. Netflix's stock rose approximately 10 percent following the withdrawal announcement. Activist investor Ancora Holdings criticized Warner Bros. for insufficient engagement with Paramount.
#streaming-industry-consolidation #ma-competition #warner-bros-discovery #paramount-skydance-merger #corporate-acquisitions
Read at www.cbc.ca
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