Paramount Sends Letter To Warner Bros. Discovery Shareholders Citing Why Its Offer Is Superior

(RTTNews) - Paramount, a Skydance Corporation (PSKY) Wednesday sent a letter to the shareholders of Warner Bros. Discovery, Inc. (WBD) stating why Paramount's $30.00 per share all-cash offer to acquire all of WBD is superior to WBD's transaction with Netflix (NFLX).

"Our public offer - identical to the terms we presented to WBD privately - delivers superior value and a faster, more certain path to completion than the transaction announced with Netflix. It Is Not Too Late To Realize The Benefits Of Paramount's Proposal If You Choose To Act Now And Tender Your Shares," the company said in the letter.

The company added that its offer is financially superior to Netflix's transaction, which provides WBD shareholders with lower value, less cash and significantly less certainty. On its face, Netflix is offering WBD shareholders $23.25 per share in cash, $4.50 in stock and a share in WBD's Global Networks spin-off. In reality, however, the total value is materially lower than advertised.

The company also noted that its offer is not subject to any financing conditions and will be financed by $41 billion of new equity backstopped by the Ellison family and RedBird Capital and $54 billion of debt commitments from Bank of America, Citi and Apollo.