Paramount Firmly Stands by Its All-Cash Offer of $30 Per Share for Warner Bros. Discovery

Paramount Stands Firm on Its Acquisition Offer

On January 8, 2026, Paramount Skydance Corporation (NYSE: PSKY) announced its steadfast commitment to its proposed acquisition of Warner Bros. Discovery, Inc. (NYSE: WBD). This comes in light of WBD's decision not to engage with Paramount regarding their enticing $30 per share, all-cash offer. The proposal aims to enhance value for WBD shareholders compared to the existing deal with Netflix, which has shown indications of diminishing value.

The acquisition proposal reflects Paramount's strong position and determination to provide shareholders with a guaranteed cash payment, which its leaders believe is a superior alternative to the uncertain valuations tied to Netflix's stock components. Paramount emphasized that their offer is fully financed and has been restructured to address each of the WBD's concerns presented earlier. Notably, an irrevocable personal guarantee by Larry Ellison was provided, which Paramount claims resolves WBD's issues regarding the financial backing of this acquisition.

Paramount’s Assertive Position

David Ellison, the Chairman and CEO of Paramount, expressed confidence in the offer made to WBD’s investors. He stated that Paramount’s proposal not only delivers greater reliability but also facilitates a smooth and expedient process for completing the acquisition. According to Ellison, WBD shareholders would have an easier and more certain exit strategy with Paramount's cash offer than with Netflix's agreement, which included a complicated mix of cash and stock.

The valuation analysis presented by Paramount is critical to understanding the context of this acquisition bid. Paramount contends that the value of Netflix’s agreement to WBD shareholders has sharply declined. It was initially advertised as offering $23.25 cash, alongside $4.50 in Netflix stock and an interest in a spin-off entity. However, with Netflix’s stock trading well below the purchase price established during its announcement, the current valuation of the offer is estimated at around $27.42 thus presenting less cash value for WBD’s shareholders than Paramount's straightforward cash incentive.

Insights on Discovery Global's Valuation

In outlining its rationale, Paramount asserts that the value of Discovery Global, which is central to WBD's offering with Netflix, currently stands at zero. Paramount’s analysis projects that, given Discovery Global's performance metrics and operational challenges compared to its direct competitor, Versant Media, it cannot retain high equity value. Paramount represents that should Discovery Global trade similarly to Versant, it should, at best, reflect a zero value per share.

Furthermore, Paramount articulates skepticism regarding the sustainability of Discovery Global as a stock, especially considering its expected leverage and historical performance, underscoring the risks involved for investors. As a part of its analysis, Paramount has consistently addressed all inquiries and comments raised by WBD, cementing its dedication to a transparent process going forward.

Acknowledging Regulatory Obligations

Moreover, Paramount remains committed to advancing discussions that would enlighten WBD shareholders on the merits of its superior offer while fulfilling essential regulatory review processes required for the acquisition. Paramount openly invites WBD’s leadership to engage further in what it describes as a persuasive case for shareholders to favor their offer.

Finally, Paramount underscores the importance of transparency in negotiations, significantly during complex transactions of this scale. Their negotiation stance seeks to engage WBD’s shareholders meaningfully and constructively to evaluate the merits of their higher cash proposal over Netflix's multifaceted offer.

In conclusion, as Paramount Skydance stands firm behind its proposal to acquire Warner Bros. Discovery, it exemplifies a critical strategy to emerge as a leader within the media and entertainment landscape while promising shareholders greater value and certainty in an evolving market landscape. Investors and stakeholders are encouraged to look beyond the complexities of Netflix's offer and prioritize the straightforward benefits presented by Paramount's offer.