Rich Greenfield on Paramount's Warner Bros. Discovery Offer and Netflix Bid

Warner Bros. Discovery Board's Decision

• 🎯 The Warner Bros. Discovery board has already determined that Netflix's bid was worth more than $30, likely between $30.50 and $31.50.
• ⏳ It is not expected that much will change in the next 10 days regarding the current offers.

Paramount's Potential Offer Increase

• 💰 If the WBD board deems Paramount's offer insufficient compared to Netflix's, the question becomes whether Paramount will raise its bid.
• 🏦 Paramount could attempt to go directly to shareholders, but this would require regulatory approval, a process that could take 12-15 months.
• 📈 Raising the bid further would increase the leverage on the combined company, with significant funding already coming from sources like the Ellisons and Middle Eastern countries.

Current Offer Dynamics

• ⚖️ The ball is currently in the court of the WBD board, which will re-evaluate Paramount's offer.
• 🧐 The board is expected to reach a similar conclusion as before, as they likely do not believe they made a mistake in their initial assessment.
• ❓ The only potential external factor is whether Netflix might raise its bid in the interim to extinguish the current situation, though this is considered unlikely.
• 🤝 The expectation is that Netflix will likely stand pat and wait for Paramount to raise its offer.