Posted in: Current News, Movies, Netflix, Opinion, TV, TV | Tagged: netflix, opinion, paramount skydance, warner bros discovery

Warner Bros. "Reviewing" Paramount Offer Backed by Trump's Son-in-Law

Warner Bros. Discovery will spend the next ten days reviewing Paramount Skydance's hostile bid before making a recommendation to stockholders.

Earlier today, David Ellison and the folks over at Paramount Skydance initiated a hostile bid for Warner Bros. Discovery (WBD), looking to torpedo the announced deal between Netflix and WBD. The tender offer from Paramount Skydance would be for $30/share in cash, compared to Netflix's offer of $27.75/share, which would be a mix of cash and some stock, with shareholders acquiring a stake in the spinout of the linear networks. In total value, you're looking at Netflix's deal coming in at $82.7 billion, while Paramount Skydance's deal would total $108.4 billion. A key difference is that while Paramount Skydance is looking to purchase WBD as a whole, Netflix is only eyeing the studios and streaming service. The move comes as Ellison and Paramount Skydance spent the day working the press to express how they feel they weren't given a fair shot in the bidding process and why Paramount Skydance would be better for the entertainment community.

Warner Bros. Discovery "Will Carefully Review and Consider" Paramount Skydance's Hostile Bid: Though it is "not modifying its recommendation with respect to the agreement with Netflix," WBD's board announced that it will review Paramount Skydance's hostile bid and offer its recommendation to shareholders within 10 business days (no latr than Friday, December 19th). "The Warner Bros. Discovery Board of Directors (the 'Board'), consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will carefully review and consider Paramount Skydance's offer in accordance with the terms of Warner Bros. Discovery's agreement with Netflix, Inc. Warner Bros. Discovery intends to advise its stockholders of the Board's recommendation regarding Paramount Skydance's tender offer within 10 business days," the company offered in response. Until then, WBD's board is urging stockholders "not to take any action at this time with respect to Paramount Skydance's proposal."

Paramount Skydance's Hostile Bid Includes Backing From Saudi Arabia, Qatar, Abu Dhabi, and Jared Kushner's Affinity Partners: In official court filings, we learned that the tender offer is being supported by $24 billion in debt financing from sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, as well as from Jared Kushner's Affinity Partners. It should be noted that Kushner is POTUS Donald Trump's son-in-law (Kushner is married to Ivanka Trump) – the same Trump who spoke glowingly about Ellison and how he believes Warner Bros. Discovery would be a great fit with Paramount Skydance. Though Kushner's Affinity Partners and the sovereign wealth funds have pledged "to forgo any governance rights – including board representation – associated with their non-voting equity investments," some are questioning what level of political influence this could offer them moving forward.

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