Paramount has made a rival offer to buy Warner for $108 billion

Paramount has announced the launch of a $108.4 billion tender offer for Warner Bros. Discovery, saying that Netflix’s $83 billion offer values the company lower and carries more regulatory risk.

Paramount is offering WBD shareholders an all-cash deal – $30 a share – and includes the group’s entire business, including its Global Networks segment. The company believes their offer provides a higher and more transparent payout than Netflix’s scheme, which combines shares and cash and could require lengthy approvals in multiple jurisdictions.

P Paramount’s appeal notes that their offer gives WBD shareholders $18 billion more cash compared to Netflix’s offer. The company also criticizes the Global Networks valuation on which WBD’s board is basing its offer, calling it “illusory” and unsupported by current results.

Paramount management’s position and details of the proposal

Paramount CEO David Ellison said WBD shareholders should be given the opportunity to consider a “more favorable all-cash offer” for the entire company. In an interview with CNBC, he wouldn’t answer a question about whether his father, Larry Ellison, would be willing to sell a stake to fund the deal.

According to documents highlighted by Axios, Affinity Partners, a private equity firm founded by Jared Kushner, is also involved in the deal.

Context of competing bids

Netflix previously offered $83 billion for WBD’s movie studios and streaming business, but its deal did not include linear TV channels. Paramount argues that the expanded asset package makes their offer more attractive and reduces uncertainty for shareholders.

An expanded package of assets makes their offer more attractive and reduces uncertainty for shareholders.

WBD has not yet commented on Paramount’s new initiative and decision to reconsider its support for the Netflix deal.