Paramount has confirmed it will continue pursuing its $30 per share all-cash offer for Warner Bros. Discovery (WBD), despite the target company’s board rejecting the bid earlier this week.
In a statement on Thursday, Paramount CEO David Ellison said the offer remains “superior” to the deal WBD has signed with Netflix. He encouraged WBD shareholders to support Paramount’s proposal, claiming it provides “greater value and a more certain, expedited path to completion.”
Earlier this week, WBD’s board rejected Paramount’s revised offer, which included a personal guarantee from Oracle founder Larry Ellison. The board stated that the bid still did not address all their concerns.
Paramount countered by saying it had “diligently and constructively addressed each concern” raised by WBD. The company also released a financial analysis of the Discovery Global spinout, arguing that the unit should have “no equity value” or at the very least trade at a discount compared with Versant, a recently listed company whose shares have fallen since debut.
The announcement suggests Paramount intends to continue its campaign to secure shareholder approval. The company has set January 21 as the expiration date for its tender offer, although it has the option to extend it.
The outcome will depend on whether Paramount can persuade a majority of WBD shareholders to tender their shares, despite the board’s opposition. The deal, if successful, would represent a major shake-up in the media industry.
