Warner Bros. Rejects $108B Paramount Amended Bid
The Spin
Narrative A
Paramount's bid deserves stronger consideration because it offers shareholders $17.6 billion more in cash than Netflix's deal and provides a clearer path through regulatory hurdles thanks to the Ellison family's connections. The all-cash $30-per-share offer represents genuine value. Warner's board is ignoring a superior deal simply because CEO David Zaslav wants to protect his friendship with Netflix chief Ted Sarandos.
Narrative B
Warner's board made the right call because Paramount's offer isn't clearly superior when accounting for the $2.8 billion Netflix breakup fee and additional financing costs that push the real gap to nearly zero. Paramount's proposal carries massive counterparty and financing risks as the largest leveraged buyouts in history, with no guarantee that the debt-laden structure can actually close. Netflix provides certainty with a stronger balance sheet.
