To acquire Warner Bros, the major online streaming company Netflix had placed a bid of $8.3 billion. However, the bidding process has now taken a new turn because Paramount has created a stir by offering a much higher bid. Paramount has submitted a $10.84 billion takeover bid for Warner’s studio and streaming service Inferior.
Paramount’s bid also includes Warner’s linear networks, which were not part of Netflix’s offer. Paramount claims that the deal it has proposed is far superior compared to Netflix’s bid.
Why did Paramount call its deal better than Netflix’s?
Paramount says that obtaining regulatory approval for the acquisition of Warner will likely take a very long time, and there is no certainty about the outcome. Given these circumstances, Paramount believes that the deal it has offered is much more attractive for Warner than Netflix’s offer.
These remarks were made by Paramount Chairman and CEO David Ellison in an interview with CNBC. However, he avoided answering the question about whether his father, Larry Ellison, would sell his shares to fund the acquisition.
Regulatory filings have also revealed an important detail: Jared Kushner — former U.S. President Donald Trump’s son-in-law — and his private equity firm Affinity Partners are also part of Paramount’s bidding consortium.
Paramount releases a comparison table
Paramount has published a comparison table to show why its offer is better than Netflix’s.
Regarding the scope of the deal, Paramount says it will acquire 100% of Warner Bros and Discovery, whereas Netflix has submitted a bid only for the streaming and studio businesses.
On cash consideration, Paramount says it has offered $30.00 per share, compared to Netflix’s $23.25 per share.
In terms of total consideration, Paramount has proposed $30 per share, while Netflix’s offer amounts to $27.75 per share. Netflix’s bid also includes $4.50 per share in Netflix stock.
Now, speaking of total offer value, Paramount’s bid remains $30 per share, while Netflix’s is $28.75 per share, which includes $1 per share in Global Networks stock.
Additionally, Paramount says that its deal could receive regulatory approval within 12 months, while Netflix’s bid may take significantly longer.
