Paramount Skydance chief David Ellison sent a lengthy letter to Warner Bros. Discovery stockholders today stating the case for why his company would be the best buyer for Netflix. In his call to action, he asked WBD investors to tender their shares today according to THR.
Ellison’s current offer for Warner Bros. Discovery, the company’s seventh overall, is $30 per share in straight cash for the entire thing. He calls it ‘superior value’ to Netflix’s offer of $23.25 per share in cash, $4.50 in stock and one share in the Discovery Global spin-off.
Ellison also believes a Paramount acquisition has fewer government hurdles to clear than the Netflix one, especially in Europe under its new DigitalServices Act and Digital Markets Act.
The letter also tackles questions about Ellison’s funding sources which have been under scrutiny, saying: “To suggest that we are not ‘good for the money’ (or might commit fraud to try to escape our obligations), as certain reports have speculated, is absurd.”
The letter follows a report on Bloomberg, which indicated that Netflix was previously considered buying both Disney and EA at one point. The Disney deal was scratched as chairman Reed Hastings says he prefers to ‘build things from scratch’.
Bloomberg also reports that the fight between Netflix and Paramount for Warners is likely to drag on for months. It would suggest the letter is to gauge how much support it has from Warner Bros. investors before proceeding – both companies have the ability to increase their offers.
