Paramount Skydance Corp (NASDAQ:PSKY) has reiterated its $30 per share all-cash offer to acquire Warner Bros Discovery Inc (NASDAQ:WBD, XETRA:J5A), a day after the WBD board rejected the proposal as inferior to Netflix Inc (NASDAQ:NFLX, XETRA:NFC)’s competing bid.
In a statement, Paramount said it noted WBD’s decision not to engage but maintained that its offer is “superior to WBD’s existing agreement with Netflix and represents the best path forward for WBD shareholders.”
Paramount has argued that Netflix’s cash-and-stock transaction, which includes Warner Bros’ film and TV studios, streaming service, and HBO assets, contains “multiple uncertain components” and has declined in total value due to Netflix’s falling stock price. It believes its all-cash offer provides a more certain and easily valued alternative for shareholders.
The WBD board rejected Paramount’s amended offer on Wednesday, describing it as offering “insufficient value.”
Paramount responded that it had addressed concerns raised by WBD, including through an irrevocable personal guarantee from Oracle co-founder Larry Ellison for the equity portion of the financing.
Paramount’s $108.4 billion proposal combines $40 billion in equity and $54 billion in debt to finance the transaction, valuing WBD shares at $30 each. In comparison, Netflix’s deal offers $27.75 per share through a combination of cash, stock, and a planned spin-off of Discovery Global.
“Our offer clearly provides WBD investors greater value and a more certain, expedited path to completion,” Paramount CEO David Ellison said in a statement.
“Throughout this process, we have worked hard for WBD shareholders and remain committed to engaging with them on the merits of our superior bid and advancing our ongoing regulatory review process.”
Warner Bros Discovery has said it is not currently negotiating with Paramount and has cited concerns over the “extraordinary amount of debt financing” required, which it says could heighten the risk of closing. The company has indicated it remains open to a compelling proposal from Paramount.
Netflix’s transaction, by contrast, does not require additional equity financing and is supported by $59 billion in bank debt, including commitments from Wells Fargo, BNP Paribas, and HSBC Holdings.
Shares of Paramount added 0.7% at $12 on the update, Warner Bros Discovery shares were down 0.7% at $28.40, while Netflix stock was down 1.1% at $90.