Paramount’s Secret Pursuit: Three Rejected Offers for Warner Bros. Discovery

In a shocking revelation, Paramount made not one, not two, but three bids to acquire Warner Bros. Discovery in just one month, with all offers being rejected by the media giant. The details of these secret bids were revealed in a letter sent by Paramount’s CEO, David Ellison, to Warner Bros.’ board of directors.

According to reports, Paramount’s latest offer, delivered on October 13, was a proposal to pay Warner Bros. Discovery’s shareholders $23.50 per share in a mix of cash and stock. However, sources suggest the actual offer was slightly under $24 per share, with 80% of the payment in cash. This would value the company at approximately $60 billion, representing an 18% premium from Warner Bros. Discovery’s current share price.

What Prompted the Bids?

The pursuit began in mid-September when Paramount initiated talks with Warner Bros. Discovery. Despite the rejections, Paramount’s CEO, David Ellison, proposed that Warner Bros.’ CEO, David Zaslav, could stay on as co-CEO and co-chairman of the combined company. This gesture, however, was not enough to sway the board.

Other Potential Suitors Emerge

Following Warner Bros. Discovery’s announcement that it’s up for sale due to “unsolicited interest” from multiple parties, other media giants have expressed interest. Comcast and Amazon are reportedly among the potential suitors, which could pressure Paramount to increase its offer.

Warner Bros. Discovery’s Response

Warner Bros. Discovery’s board has initiated a comprehensive review of strategic alternatives to identify the best path forward. CEO David Zaslav stated, “It’s no surprise that the significant value of our portfolio is receiving increased recognition by others in the market.” Zaslav’s comments suggest the company is open to exploring different options, including selling parts of the business.

Market Reaction

Warner Bros. Discovery’s shares rose over 2% following the news, while Paramount Skydance’s shares dipped slightly. The market reaction reflects the uncertainty surrounding the potential deal and the company’s future.

What’s Next?

As the bidding process unfolds, Paramount may need to revisit its offer to secure a deal. With other potential suitors in the mix, including Netflix and Apple, who might be interested in acquiring specific assets like HBO, the competition is heating up. The outcome remains uncertain, but one thing is clear: Warner Bros. Discovery’s future is up for grabs.

Key Players and Their Moves:

• Paramount: Made three bids for Warner Bros. Discovery, all of which were rejected. Latest offer was for approximately $60 billion.
• Warner Bros. Discovery: Rejected Paramount’s offers and is exploring strategic alternatives, including a potential sale.
• Comcast and Amazon: Potential suitors that may bid on Warner Bros. Discovery.
• Netflix: May be interested in acquiring specific assets, but not the entire company.
• Apple: Could be a potential buyer for specific assets like HBO