Paramount launched this Monday (8) a purchase offer worth 108 billion dollars (around 585 billion reais) to buy Warner Bros Discovery, with the aim of surpassing the proposal made by Netflix last week.
The all-cash offer for Warner’s entire business, including cable, studio and streaming businesses, values the media group at $30 per share.
Earlier, on Friday (5), Netflix beat bids from its competitors – including Paramount itself and Comcast – for the assets of Warner, one of Hollywood’s oldest and most valuable groups. The deal was worth $82.7 billion and involved only Warner’s studios and streaming businesses. The Harry Potter and Batman franchises would be added to the streaming pioneer’s portfolio, as well as HBO’s premium programming, with titles such as Friends and Game of Thrones.
Netflix’s proposal values Warner at US$27.25 per share and is a combination of cash and stock assets.
To top it off, Paramount said it offered an additional $18 billion in cash for the media group’s operations. This measure, according to a person with direct knowledge of the matter heard by the Financial Times, aims to convince Warner shareholders, skeptical about Netflix’s ability to conclude the agreement.
“Although Paramount submitted six proposals in 12 weeks, WBD (Warner Bros Discovery) never engaged meaningfully on these proposals, which we believed offered the best outcome for WBD shareholders,” Paramount said Monday.
“Paramount has now submitted its offer directly to WBD shareholders and its board of directors to ensure they have the opportunity to pursue this clearly superior alternative,” he added.
Warner’s board had opted for Netflix on Thursday evening and believed the streaming giant’s offer provided more clarity. He was also the most accommodating to the demands of the media group.
According to a person close to Warner, the board’s top priority, more than evaluation, was choosing a bidder who could sign immediately, withstand regulatory scrutiny and close on the required terms.
This text is being updated
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