Dec 22 (Reuters) - Oracle co-founder Larry Ellison will provide a personal guarantee of $40.4 billion in equity financing to back Paramount Skydance's all-cash $108.4 billion bid for Warner Bros Discovery.
Paramount said in a regulatory filing the amended terms do not change the $30-per-share offer.
Warner Bros chose Netflix as its suitor earlier this month, securing an $82.7 billion enterprise deal for its TV, film studios and streaming assets, while Paramount's bid includes all of Warner Bros' assets.
Here is how both the bids compare:
Netflix Paramount Skydance
Savings $2 billion to $3 Combined business will
billion in annual execute more than $6
savings billion in cost
synergies
Offer $23.25 in cash and All cash tender-offer,
about $4.50 in per $30.00 per share in cash
share stock
Premium 121.3% to Warner Bros 139% to the undisturbed
Discovery's closing Warner Bros' stock price
price on Sept. 10 of $12.54 as of
September 10
Closing Between 12 months to More than 12 months
18 months
CEOs Co-CEOs Ted Sarandos David Ellison
and Greg Peters
Backers and Debt funding of up to Larry Ellison, RedBird
financing $59 billion via Wells to provide equity
Fargo, BNP Paribas, capital, debt funding of
HSBC Bank, along with $54 billion from Bank of
cash on hand and America, Citi and
equity Apollo. Other financing
partners include Saudi
Arabia’s Public
Investment Fund, Abu
Dhabi-based L’imad
Holding Company PJSC,
Qatar Investment
Authority and Affinity
Partners
Value Enterprise value of Enterprise value of
$82.7 billion, equity $108.4 billion, equity
value of $72.0 billion value of $74.35 billion
Breakup fee Netflix to pay $5.8 Paramount to pay $5.8
billion, Warner Bros billion
to pay $2.8 billion
Streaming Over 300 million 79.1 million
subscribers
U.S. Trump said regarding Trump in a post on Truth
President the acquisition: Social criticized CBS
Donald "Netflix is a great and its new owners after
Trump's company. They’ve done Paramount was acquired
comments a phenomenal job. Ted by Skydance. He said
is a fantastic man… that since the
They have a very big acquisition, the program
market share and when 60 minutes has "actually
they have Warner gotten worse." In the
Bros., you know, that past, however, Trump has
share goes up a lot praised Paramount
so, I don't know." Skydance CEO David
Ellison, calling him
"great".
Market cap Valued at $431.3 Valued at $13.9 billion
billion as of closing as of closing price on
price on Dec. 19 Dec. 19
Assets on Warner Bros' film and All of Warner Bros
the line television studios, Discovery including
videogame IP and film, television,
developers, HBO streaming, gaming and
network and its cable television
content library, and networks including HBO
the HBO Max streaming and CNN
service
Source: Company filings, LSEG data, media reports
(Reporting by Zaheer Kachwala, Anhata Rooprai and Arnav Mishra in Bengaluru; Editing by Arun Koyyur)
