Days after Netflix tentatively sealed a deal to purchase studio monolith Warner Bros. Discovery, one of the streaming service's biggest competitors is making a backend attempt to snatch WB away, as Paramount has submitted an all cash bid of around $100.7 billion directly to WB shareholders, $18 billion more than Netflix's $82.7 billion offer.
Paramount states that Warner Bros. Discovery "never engaged meaningfully" with their previous attempts to negotiate the purchase of the entertainment giant.
Along with the higher purchase price, Paramount also cites a more friendly approach to maintaining theatrical release windows for important films, a rising concern among filmmakers wary of Netflix's streaming-first approach.
"WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company. Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion," says David Ellison, chairman and CEO of Paramount.
"We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business and a challenging regulatory approval process," he continues. "We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares."
Warner Bros. Discovery has responded to the offer, promising to "carefully review and consider Paramount Skydance's offer in accordance with the terms of Warner Bros. Discovery's agreement with Netflix" (via Deadline). The WB board of directors has indicated that is not modifying its recommendation with respect to the agreement with Netflix, stating they will respond "within 10 business days."
Meanwhile, Netflix CEO Ted Sarandos says Paramount's bid is "entirely expected," reiterating his confidence that the streamer's deal to buy Warner Bros. Discover will be completed.
"We have a deal done, and we are incredibly happy with the deal. It's great for shareholders, great for consumers," Sarandos says (via Deadline). We think it's a great way to create and protect jobs in the entertainment industry.
We're super confident we're going to get it across the line. So we're set."
While we wait to see what happens next, check out the best shows to watch on Netflix right now, for a taste of how the streaming service handles its content.
