By Miguel Mike Medina
Photo Credit: Screen Daily
The bid is one. The competition among streaming services is fierce. Paramount makes hostile bid for Warner Bros Discovery.
The public offer is $30 a share in cash, topping Netflix’s $27.75 in cash and stock. The transaction includes the entire Warner Bros. Discovery. Paramount Skydance CEO David Ellison said they are finishing what they started.
The entrepreneur joined CNBC’s ‘Squawk on the Street’ to discuss his company’s bid for Warner Bros.
“Netflix will ultimately be holding something that is not worth anything,” Ellison said. “We believe that our offer is superior to that of shareholders. We’re the largest shareholder of the Paramount class B common stock.”
Ellison believes that his company is the largest investor in the deal. David comes from a wealthy family, and they’re incredibly fierce in competition: David, the son of Oracle founder Larry Ellison, who is worth up to $ 277 billion.
The new agreement addresses many things. If the deal moves forward, it could be the beginning of the end of the movie business. Paramount’s offer is supported by $24 billion in debt financing from Saudi Arabia, Qatar, and Abu Dhabi.
Warner Bros and Paramount are traditional TV and film companies with streaming services right in the mix. As for Netflix, it’s always been a streaming service first at all costs.
Warner Bros. Discovery’s board of directors has already approved its deal with Netflix, but Paramount will not stop until it gets what it wants. According to Greenlight Analytics, about 40 percent of HBO Max subscribers also use Paramount+.
If Netflix seals the deal in the next 18 months, it will have an equity value of $72 billion and an enterprise value of $82.7 billion, and Warner Bros will spin off cable networks.
Miguel Mike Medina is the publisher of The MMM Journal. He can be reached at medinamiguelmike@gmail.com and themmmjournal@gmail.com
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