Bankinter | Paramount Skydance launches a takeover bid for Warner Bros at $30.0 per share. The payment would be made in cash and represents a premium of 139% based on the share price prior to the news of a possible purchase of the company. It therefore exceeds the offer from NETFLIX (£96.79; -3.44), which is offering £27.75 per share in a combination of cash and shares. Overall, Paramount’s offer values Warner at £108.4 billion, compared to £82.7 billion for Netflix’s offer, which has been accepted by the company’s board. In addition, the Warner/Netflix merger could pose more problems from a regulatory standpoint because it would result in a very high market share in the streaming business. Trump himself has referred to this issue as a ‘problem’ in recent hours. For this offer, Paramount has partnered with Middle Eastern sovereign wealth funds and Jared Kushner, Donald Trump’s son-in-law. The possibility of Paramount gaining control of one of the world’s largest catalogues and merging key assets (CBS, Nickelodeon, MTV, Paramount+, CNN, HBO Max, etc.) has generated optimism among investors.
Paramount Skydance launches bid for Warner Bros exceeding Netflix’s offer: at $30 per share, valuation is $108.4 billion against $82.7 billion
