Unlike Netflix’s offer, Paramount’s latest bid includes the buyout of cable channels such as CNN, TNT, TBS and Discovery – which would be added to its group of TV assets like CBS, MTV and Comedy Central.
The offer values the entertainment giant at US$108.4 billion and represents a 139% premium over WBD’s September stock price of US$12.54, when the bidding war began.
Paramount in a statement called Netflix’s bid, which values Warner Bros. studios at nearly US$83b, “inferior and uncertain”.
“WBD shareholders deserve an opportunity to consider our superior all-cash offer,” Ellison said.
Netflix declined a request for comment from AFP.
‘Far from over’
“The Warner Bros. Discovery acquisition is far from over,” said analyst Emarketer analyst Ross Benes.
“Netflix is in the driver’s seat but there will be twists and turns before the finish line… The battle could become prolonged.”
Over the decades, Warner Brothers has produced film classics including Casablanca and Citizen Kane, as well as more recent blockbuster shows including Friends, Game of Thrones and the Harry Potter movies.
Paramount argued its deal provides greater regulatory certainty than the Netflix transaction, which it said would give Netflix a 43% share of global streaming subscribers and face “protracted regulatory challenges across the world”.
The combined company would unite Paramount’s portfolio – including Paramount Pictures, CBS, Nickelodeon and streaming site Paramount+ -– with WBD’s assets including HBO Max and major sports rights.
Paramount said the merger would generate over US$6b in cost savings while maintaining theatrical releases and increasing content spending.
Keeping movies in theatres is a very sensitive issue for the creative industry in Hollywood.
Netflix is already viewed negatively in some Hollywood circles, largely because of its reluctance to release content in theatres and its disruption of the industry.
Many veterans consider theatrical releases essential to cinema’s appeal and prestige, and also integral to maintaining Hollywood jobs and a vibrant economy.
Warner Bros. Discovery’s share price skyrocketed by more than 7% on Monday while shares in Netflix fell by over 2%.
– Agence France-Presse