Netflix Co-CEO Greg Peters Criticizes Paramount’s Warner Bros. Bid as Unconvincing

The competition for Warner Bros. has intensified between Netflix and Paramount as temperatures drop across the U.S. Recently, Netflix co-CEO Greg Peters voiced strong criticisms against Paramount’s bid, highlighting its potential flaws.

Netflix’s Superior Offer

Peters emphasized the advantages of Netflix’s proposal, which has received acceptance and confirmation, compared to the offers made by David Ellison of Paramount Skydance. He stated that Ellison’s company is burdened with significant debt, which complicates the financing of a cash bid.

• Ellison’s bid: $30 per share in cash.
• Netflix’s bid: $83 billion all-cash for Warner Bros. and associated assets.
• Paramount’s total valuation: $108 billion, encompassing Discovery Global Linear Networks and Discovery+.

Concerns Over Financing

Peters raised doubts about Paramount’s financial stability and ability to sustain its bid without external support. He cited Larry Ellison’s backing as crucial. “Without Larry Ellison independently financing this thing, there’s no chance in hell Paramount would ever be able to pull this off,” Peters remarked.

He expressed skepticism about the feasibility of a higher bid from Paramount and the leverage they would possess. “It’s hard to imagine how that works out well,” Peters stated.

Reactions from Paramount’s Camp

In response, Gerry Cardinale, the founder of RedBird Capital and key shareholder in Paramount, countered Peters’ claims. He stated, “Our leverage is nowhere near what they’re talking about” and referred to Netflix’s offer as “the Harry Houdini of deals,” implying it was misleading.

Cardinale’s comments suggest robust confidence in the Paramount bid’s legitimacy, despite Netflix’s sweeping criticisms.

Current Status of Bids

While David Ellison attempts to rally Warner Bros. Discovery (WBD) shareholders for a hostile takeover, Peters reported that only a minor fraction of shares had been tendered. As of January 21, approximately 168.5 million of the 2.45 billion total shares had been submitted.

Peters concluded, “That’s what the Warner Brothers board determined, and I think that’s where the Warner shareholders are at too.” The stakes continue to rise as Netflix and Paramount vie for control of Warner Bros.