The competition to acquire Warner Bros has intensified with the release of text messages from Paramount’s CEO following their proposal to purchase the company.
The film and television industry has witnessed a tumultuous period recently. In a surprising move, Netflix announced a significant deal to acquire Warner Bros. Discovery (WBD), including its streaming and studio assets.
WBD, which owns networks such as TLC, Cartoon Network, and Boomerang, went up for sale in October due to interest from multiple suitors. Under the terms of the $72 billion agreement, WBD shareholders would receive $27.75 per share.
Shortly after Netflix’s announcement, Paramount Skydance, led by CEO David Ellison, initiated a hostile takeover attempt by appealing directly to WBD shareholders.
A hostile takeover occurs when an acquiring company seeks to purchase another without the approval of the target company’s management.
Paramount’s bid values WBD at $108.4 billion, offering $30 per share, and aims to acquire all of WBD, unlike Netflix’s approach.
The situation took an intriguing turn when Ellison allegedly texted Warner Bros Discovery CEO David Zaslav following the public announcement of the hostile bid.
The text, revealed through a regulatory filing with the Securities and Exchange Commission, highlighted Paramount’s unsuccessful attempts to negotiate a deal with Warner Bros.
Ellison’s message stated: “David, I appreciate you’re underwater today so I wanted to send you a quick text.
“Know despite the noise of the last 24 hours I have nothing but respect and admiration for you and the company…It would be the honor of a lifetime to be your partner and to be the owner of these iconic assets.
“If we have the privilege to work together you will see that my father and I are the people you had dinner with.”
Ellison also communicated with his team through an email, explaining why he believes the acquisition would benefit Paramount. According to Business Insider, which accessed the leaked memo, it read: “We believe the combination of Paramount and Warner Bros. Discovery represents a powerful opportunity to strengthen both companies and the entertainment industry as a whole.”