\u201cI would be shocked if shareholders didn\u2019t support\u201d the Paramount bid over Netflix, said this individual. <\/p>\n\n\n\n
Two insiders told TheWrap that Paramount is unlikely to increase its bid before the Warner board responds to Ellison’s offer directly to shareholders.<\/p>\n\n\n\n
Paramount declined to comment for this story. <\/p>\n\n\n\n
A Warner Discovery spokesperson told TheWrap that the board and company have run a \u201cfair and transparent\u201d process with each of the bidders for months, including \u201cextensive opportunities for due diligence and negotiations.\u201d <\/p>\n\n\n\n
A Warner insider told TheWrap that Zaslav is not necessarily looking for $35 per share, and the Warner board was still assessing the Paramount tender offer. <\/p>\n\n\n\n
The latest from the WBD saga:<\/p>\n\n\n\n
- \n
- Warner Bros. shareholders are betting Paramount will go even higher with its offer<\/a><\/li>\n\n\n\n
- Netflix-Warner Bros. Discovery merger faces antitrust class action lawsuit on behalf of HBO Max subscribers<\/a><\/li>\n\n\n\n
- Democratic lawmakers sound alarm on Paramount’s hostile WBD bid over Middle Eastern investment<\/a><\/li>\n\n\n\n
- Netflix shares slide 8% in five days amid WBD bidding war<\/a><\/li>\n\n\n\n
- Mario Gabelli “highly likely” to tender WBD shares to Paramount<\/a><\/li>\n\n\n\n
- Trump wants total CNN overhaul in any WBD deal: “I don’t think that should be allowed to continue”<\/a><\/li>\n\n\n\n
- Moody’s warns WBD could still face credit downgrade despite Netflix deal<\/a><\/li>\n<\/ul>\n\n\n\n
The thinking at Paramount is that the case for the anti-trust argument against Netflix is clear-cut, and that the defense by the streamer that the true competition are the tech giants YouTube and TikTok, \u201cis not legally defensible in any way,” according to the knowledgeable individual. <\/p>\n\n\n\n
Creators like Taylor Sheridan or Jordan Peele cannot sell their material to YouTube, this individual argued. <\/p>\n\n\n\n
Meanwhile GAMCO Investors chairman and Paramount shareholder Mario Gabelli told TheWrap he intended to tender his shares to Paramount on Wednesday, saying the all-cash, $30-per-share offer is \u201csuperior\u201d for his clients, but added the battle with Netflix is still in the \u201cearly innings\u201d<\/p>\n\n\n\n
Gabelli’s statement is likely giving Paramount confidence that its direct appeal would convince other shareholders as well. <\/p>\n\n\n\n
Beyond talking up the regulatory advantage Paramount had if it were to buy Warner, Ellison slammed Netflix\u2019s $82.7 billion deal and called the financing for his own $108.4 billion bid \u201cair-tight.\u201d He also dismissed the idea that his deal would results in more job losses, a central argument presented by Netflix earlier this week. <\/p>\n\n\n\n
“The suggestion that Paramount’s plan relies on deeper job cuts than Netflix’s is not supported by any facts,” he said in the letter. <\/p>\n\n\n\n
The offer includes over $41 billion of equity and $54 billion in committed debt financing that is fully backstopped by the Ellison family, whose family trust has over $250 billion in Oracle stock and other assets, and RedBird Capital Partners. Approximately $17 billion is reserved to allow Warner Bros. Discovery to extend its existing bridge loan. Partners in the bid include Bank of America, Citibank, Apollo Global Management, Jared Kushner\u2019s Affinity Partners and three Middle Eastern sovereign wealth funds.<\/p>\n\n\n\n
In a graphic included in the Paramount letter, Paramount compared what Netflix market cap would be compared to the entirety of other Hollywood studios and theatrical companies: $418 billion vs $382 billion.<\/p>\n\n\n\n
Oracle billionaire Larry Ellison has a history of sticking to his offers in bidding wars, as he did when bidding for the Golden State Warriors in 2010, a bid he lost to investors Peter Guber and Joe Lacob for $450 million. <\/p>\n\n\n\n
At the time, Ellison publicly stated he submitted a higher bid than his rivals, but the Warriors\u2019 seller Chris Cohan went with the alternative saying the other bid was fully financed and ready to close immediately, which the league considered decisive.<\/p>\n\n\n\n
At the time, Ellison\u2019s claim of a higher offer came after the sale was finalized and was dismissed by the seller.<\/p>\n\n\n
\n\t - Netflix-Warner Bros. Discovery merger faces antitrust class action lawsuit on behalf of HBO Max subscribers<\/a><\/li>\n\n\n\n
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