Donald Trump speaks out on the bidding war between Netflix and Paramount for Warner Bros., sharing his two cents about the potential merger.
Netflix has already won the bidding war for Warner Bros. after shelling out a whopping $82.7 billion. However, Paramount is trying to outbid the streaming giant, offering a much more staggering amount of $108.4 billion – an all-cash tender offer to acquire all outstanding shares for $30 per share.
What Did Donald Trump Say About Netflix–Paramount’s Bidding War for Warner Bros.?
After sharing his opinion on the possible “problem” with the Netflix–Warner Bros. merger due to the streamer’s “big market share,” Trump is now addressing Paramount’s bid to acquire the studio and its associated production properties.
“I know the companies very well. I know what they are doing. But I have to see… what percentage of market they have,” the US President said during a White House roundtable on Monday, December 8. “We have to see the Netflix percentage of market, Paramount percentage of market. I mean, none of them are particularly great friends of mine. I want to do what’s right.”
Knowing that his son-in-law Jared Kushner’s private equity firm, Affinity Partners, is part of Paramount's bid, Trump clarified that he hasn’t discussed the issue yet with Ivanka Trump’s husband.
Anyhow, the POTUS seems to have a good relationship with Paramount after speaking positively about its CEO, David Ellison, which even led to the continued development of Rush Hour 4 after being long gestated.
There are also rumors that he met with Netflix CEO Ted Sarandos in November and discussed the bid for Warner Bros. before the streamer eventually won.
By the looks of it, the two companies are trying to get Trump’s favor, knowing the Justice Department will review the final transaction once the merger is finalized.
What Are Netflix and Paramount’s Offers for Warner Bros.?
Netflix, Paramount, and Comcast engaged in an intense bidding war for Warner Bros., but the studio ultimately chose Netflix.
On December 5, Netflix announced it would purchase Warner Bros. for cash and stock, “valued at $27.75 per WBD share [subject to collar], with a total enterprise value of approximately $82.7 billion [equity value of $72.0 billion].”
The statement reads:
Paramount then launched a hostile takeover of Warner Bros. to try to block its deal with Netflix, with Ellison announcing a new offer on December 8 to acquire the studio.
Its all-cash offer amounts to an enterprise value of $108.4 billion, significantly higher than Netflix’s.
Its statement reads:
Ellison even contended that “WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company.”
The statement also took direct aim at Netflix’s offer, promising not to leave “WBD shareholders with a sub-scale and highly leveraged stub in Global Networks, as the Netflix agreement assumes.”
So far, it remains to be seen what will happen with the deal.
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