Paramount launches hostile $78-billion bid for Warner Bros. Discovery, challenging Netflix
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Paramount is refusing to accept defeat in the Warner Bros.Discovery auction, launching a $78-billion hostile takeover of its rival on Monday after being spurned last week in the bidding.The move comes four days after Warner’s board unanimously selected Netflix as the winner.
Netflix had offered $72 billion — or $27.75 a share — for a big chunk of the company: Warner Bros.film and television studios, the expansive lot in Burbank and HBO and HBO Max.
Additionally, Netflix would take on more than $10 billion in Warner Bros.debt for a total deal value of $82.7 billion.Paramount, backed by the billionaire Larry Ellison family, had entered the final week of the auction with a $25 a share all-cash offer for all of Warner Bros.
Discovery, according to people involved in the auction who were not authorized to comment.In the final hours, Paramount upped its offer to $30 per share — but still came away empty handed.Paramount confirmed Monday that it submitted its $30 per share offer just a few hours before Netflix was announced as the winner.“We never heard back,” Paramount Chairman and Chief Executive David Ellison told CNBC Monday morning.
“We’re really here to finish what we started.” Hollywood Inc.Tech mogul Larry Ellison made a bold move to acquire Warner Bros.
Discovery, but lost out to Netflix, setting the stage for a legal fight that could shape the future of Hollywood.A Warner representative did not immediately provide comment.Paramount began its pursuit of Warner in mid-September.
It is now bypassing Warner’s board, management and bankers and appealing directly to shareholders in a hostile takeover.In a statement, Paramount said it’s bid was a “superior alternative” to Netflix, which will face a rigorous and lengthy anti-trust review.
Netflix declined to comment.In a statement, Paramount called Netflix’s offer “inferior,” one that would expos...