Paramount on Monday launched a hostile takeover bid for Warner Bros Discovery, initiating a potentially bruising battle with Netflix for the company behind HBO, CNN and DC Studios, and the right to reshape much of the nation's entertainment landscape.
The bid was announced days after Netflix reached a $72 billion deal to acquire Warner Bros. The bid by Paramount offers Warner shareholders about $74.4 billion, or $30 a share in cash.
The bid compares with Netflix’s offer of $27.75 in cash and stock. Paramount’s offer is for the entirety of Warner Bros, while Netflix is only interested in the Hollywood studios and streaming business.
“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” Paramount chief executive David Ellison said.
“Our public offer, which is on the same terms we provided to the Warner Bros Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion.”
Paramount, the parent of CBS, MTV and other media businesses, instigated the battle several months ago when it made several offers for Warner Bros. The company decided to put itself up for sale in October and received several rounds of bids, including from Netflix and Comcast Corp.
Warner Bros Discovery and Netflix did not immediately respond to requests for comments on Paramount's deal.
In a regulatory filing, Paramount said the Ellison family, which owns Paramount, along with private equity company RedBird Capital, had agreed to backstop $40.7 billion in equity capital.
RedBird Capital has a joint venture with IMI, the parent company of several news outlets including The National.
The offer also includes financing from Affinity Partners, owned by US President Donald Trump's son-in-law Jared Kushner, as well as the Saudi and Qatari sovereign wealth funds. UAE-owned L'imad Holding Co is also part of the deal.
Mr Trump on Sunday said the Netflix deal “could be a problem” because of the size of the combined market share.
The President said he will be involved in the decision about whether the federal government should approve the deal.
Netflix shares were down about 4 per cent during the day.
