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Paramount's $54B Bid Shakes Hollywood
9 Dec
Summary
- Paramount offers $30 per share, beating Netflix's bid.
- Bid backed by Wall Street lenders, sovereign wealth funds, and billionaires.
- Paramount aims to improve Warner Bros.' credit rating post-acquisition.
Paramount Skydance Corp. has emerged with a compelling $54 billion offer for Warner Bros. Discovery, aiming to disrupt a previously announced deal with Netflix. This significant bid is bolstered by a diverse group of powerful financial entities.
Wall Street lenders, including Bank of America and Citigroup, are providing debt financing, while equity backing comes from notable figures and investment firms. Saudi Arabia's Public Investment Fund and Qatar Investment Authority are among the international investors supporting the proposal, which aims to acquire the entirety of Warner Bros. for $30 per share.
The offer strategically undercuts Netflix's bid and is designed with a focus on financial stability. Paramount intends for the combined entity to pursue an investment-grade credit profile, potentially improving upon Warner Bros.' current financial standing. The company also plans to address existing debt.
