Citing multiple sources familiar with the matter, Bloomberg reported on Wednesday that Warner Bros. declined Paramount’s offer of around 20 dollars per share, judging that it was too low. Warner Bros. closed at 17.10 dollars per share on the New York Stock Exchange on Tuesday.
CNBC previously reported that there are differences over the acquisition amount between Warner Bros. and Paramount, and that Paramount is considering pressuring Warner Bros. shareholders to accept the acquisition offer by informing them of the offer. Paramount is reportedly in negotiations with Apollo Global Management, an asset management company, to support the bid.
David Ellison, the son of billionaire Larry Ellison, the Oracle`s chairman, is leading the group. David Ellison, who once led the movie maker Skydance, bought Paramount for 8 billion dollars this year and is eyeing Warner Bros.
Ellison declined to elaborate on the Warner Bros acquisition at an event last week, but stressed the need for the merger, saying more content is needed to strengthen streaming service competitiveness and increase subscribers. It also argued that Paramount is in a more favorable position to obtain merger approval from regulators.
Meanwhile, Paramount has produced Mission Impossible and Transformers, and has cable channels CBS, MTV, and streaming service Paramount+ under its subsidiaries. Warner Bros. owns DC Comics intellectual property rights and operates TV channels such as CNN and HBO Max streaming services.
SALLY LEE
US ASIA JOURNAL
