Overview
- Paramount Skydance CEO David Ellison sent a letter urging investors to tender at $30 per share, touting fully committed financing and a faster, more certain path than Netflix’s offer.
- Warner Bros. Discovery has not changed its recommendation of Netflix’s agreement and must decide by Dec. 22 if Paramount’s bid is superior, after which Netflix can match; the tender runs into early January.
- The bids differ fundamentally on cable assets: Netflix’s $27.75-per-share deal covers studios and HBO streaming and relies on spinning off CNN, TNT and Discovery, while Paramount’s offer buys the entire company.
- President Trump said any sale should include divesting CNN, as both proposals draw scrutiny from regulators and politicians, with Democrats questioning foreign financing and Republicans warning about Netflix’s market power.
- Paramount’s financing mix includes Ellison family funds, Middle East sovereign wealth money, RedBird Capital and Jared Kushner’s Affinity Partners, while unions and theater groups warn the consolidation could threaten jobs and theatrical releases.