Paramount has confirmed its readiness to acquire Warner Bros. Discovery in its entirety.
Paramount remains steadfast in its pursuit of acquiring Warner Bros. Discovery (WBD) at $30 per share, urging shareholders to back its compelling offer.
On Thursday, Paramount officially reaffirmed its commitment to acquiring WBD, highlighting that its all-cash buyout proposal presents a more appealing opportunity than WBD’s existing agreement with Netflix. The company simultaneously reached out directly to WBD shareholders to garner their support.
Paramount’s Offer and Executive Perspective
Paramount is ready to purchase Warner Bros. Discovery shares at $30 each, asserting that this offer delivers maximum value to investors and promises a swifter transaction process. Paramount CEO David Ellison emphasized that the company has consistently prioritized the interests of WBD shareholders and will continue to actively champion its bid.
Ellison noted that Paramount’s proposal offers shareholders enhanced value along with a clear, efficient closing route that includes regulatory approvals. He also expressed the company’s willingness to engage in further discussions to outline the benefits of its offer and promote it within the market.
WBD Board’s Rejection of Paramount’s Bid
Earlier in the week, Warner Bros. Discovery’s Board of Directors formally declined Paramount’s updated proposal. Despite the inclusion of personal guarantees from Oracle founder Larry Ellison, WBD’s management maintained that the offer failed to fully resolve their concerns.
As a result, the board remains resolute in its opposition, standing firm despite the additional assurances provided by Paramount.
Paramount’s Counterpoints and Financial Insights
In response, Paramount underscored its good faith efforts and consistent engagement with WBD’s concerns. The company presented its own financial evaluation, focusing on the proposed spin-off of Discovery Global.
Paramount’s analysis suggests that the spin-off would hold minimal or no equity value, potentially trading at a steep discount. This assessment reinforces Paramount’s argument that its acquisition proposal is more advantageous for WBD shareholders.
Next Steps in the Acquisition Battle
Paramount’s firm stance signals its intent to appeal directly to Warner Bros. Discovery investors, aiming to convince a majority to tender their shares. The current offer is valid until January 21, 2026, with Paramount retaining the option to extend the deadline if needed.
The final outcome hinges on how WBD shareholders respond to the offer and whether they choose to support the deal despite the board’s opposition.
