The numbers
$31 per share: Paramount’s updated bid for Warner Bros. Discovery, raised from $30 per share.
10%—DTC growth for Paramount year over year, led by Paramount+.
-5%—Losses at TV networks to $4.7 billion, compared to $4.98 billion the previous year.
$30 billion—Paramount’s expected revenue for 2026.
The watercooler talk
During Paramount Skydance’s Q4 earnings call on Wednesday, CEO David Ellison noted that Paramount’s new all-cash bid for WBD is $31 per share, up from $30 per share. The Paramount CEO said the company looks forward to continuing to engage with WBD’s board but wouldn’t comment further during the call.
Though Ellison skirted analyst questions about a potential merger, he did note the company’s strategy moving forward was focused on endeavors that create long-term value.
“We really approach everything through the lens of how do we create long-term shareholder value, which really means we’re long-term investors. We’re long-term owner-operators. And we really have a long-term horizon in terms of how we’re approaching this,” Ellison said.
Following Paramount’s improved bid on Monday, Warner Bros. Discovery said the bid could “reasonably be expected” to lead to a superior proposal. Paramount’s bid also reportedly includes a 25-cent-per-share-per-quarter ticking fee, effective after Sept. 30, as well as a $7 billion termination fee. Paramount also reaffirmed that it will pay the $2.8 billion termination fee that WBD would be required to pay if the Netflix deal didn’t go through.
Though it continues to engage with Paramount, WBD is still recommending Netflix’s bid, which was revised in January to an all-cash offer of $72 billion, or $27.75 per WBD share.
The key quote
“I’ll briefly address our proposal to acquire Warner Bros. Discovery. On Monday, we submitted a revised bid of $31 per share, all cash, and we look forward to continuing to engage with their leadership team and board. While we appreciate that this is obviously something you all have questions about, we won’t be commenting further during today’s call.” — David Ellison, Paramount Skydance CEO
