US EditionParamount's new offer for Warner Bros is not sufficient, major investor says
Paramount's $108.4 billion bid includes a $40.4 billion personal guarantee from Larry Ellison but faces opposition from key shareholders who question financing security.
- On Dec 23, Harris Oakmark said Paramount's amended $108.4 billion bid remains insufficient and it will hold out, owning about 4% of Warner Bros Discovery shares.
- Paramount on Monday bolstered financing by securing Larry Ellison’s guarantee of $40.4 billion and increased the breakup fee to $5.8 billion, but kept its $30-per-share bid amid revocable trust concerns.
- The Warner Bros board unanimously recommended rejecting Paramount's earlier bid, saying the financing lacked a `full backstop`, favoring Netflix's $23.25 cash offer plus $4.50 in shares and Discovery Global spin-out value.
- Investor Thomas Poehling said he'll likely accept Paramount's revised offer if Netflix doesn't counter, while Vanguard, State Street and BlackRock control at least 22% of Warner Bros, giving shareholders substantial sway.
- The bidding war underscores the perceived quality of Warner Bros assets, with analysts and investors noting, `We see the two deals as a toss-up, and there is a cost to changing paths.
23 Articles
23 Articles
Larry Ellison has built the world's third largest fortune by clinging to his Oracle shares, rarely selling his shares and, on the other hand, resorting to loans to finance billions of investments and lifestyle expensesBut a potential personal guarantee of over $40 billion to support Paramount's cash offer by Warner Bros would be his biggest investment so far, and could reshape his wealth possibly by forcing the billionaire to reduce his Oracle h…
Major WBD Shareholder Pushes Back on Paramount’s Amended Bid, Says Offer Still Falls Short
A major WBD Shareholder is signaling that the latest Paramount attempt to win over investors still hasn’t cleared the bar, even after sweetening its proposal with new financial guarantees and revised terms. The post Major WBD Shareholder Pushes Back on Paramount’s Amended Bid, Says Offer Still Falls Short appeared first on That Park Place.
Major WBD Shareholder Calls Amended Paramount Bid ‘Not Sufficient’
Paramount has submitted its latest offer in its quest to own Warner Bros. Discovery, but one of WBD’s major investors isn’t having it. A representative for Harris Associates, Warner Bros.’ fifth-largest shareholder, warned against the latest bid from David Ellison’s Paramount, saying that it still did not represent the best possible deal on the pending WBD transaction. Harris, as of the end of September, owns about 4% of WBD shares with 96 milli…
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