The leadership of the American firm Paramount Skydance Corp. sought backing from French President Emmanuel Macron as part of the campaign to promote its $108.4 billion bid to acquire Warner Bros. Discovery, reports Bloomberg.
According to agency sources familiar with the situation, Paramount executives held discussions with Macron and senior French officials. The company’s management also visited London to discuss the transaction with representatives of the British authorities, the agency notes.
The day before, Netflix announced its readiness to offer to purchase the studio and streaming operations of Warner Bros. Discovery entirely for cash, as reported by The Wall Street Journal and The Financial Times.
According to Bloomberg data, Netflix is contemplating adjusting the terms of the agreement to expedite its finalization amid resistance from Paramount Skydance.
Netflix’s initial offer valued Warner Bros. Discovery at $82.7 billion. It involved paying shareholders $23.25 billion in cash and $4.5 billion in Netflix shares with an adjustment mechanism if the stock price dropped below $97.91. Since October, when the contest for the asset began, Netflix shares have decreased in value by about 25%. On January 13, the securities traded at $89.07, and the next day they rose by 1.6%.
Almost immediately after the deal was announced, Paramount proposed buying out Warner Bros. Discovery in full, including the studio, HBO, and the CNN and TNT Sports television networks, for $108 billion. Paramount CEO David Ellison and his father, Oracle co-founder Larry Ellison, provided a personal guarantee of $40.4 billion.
The Warner Bros. Discovery board of directors rejected all of Paramount’s proposals. Following this, Ellison’s company filed a lawsuit, demanding greater disclosure of information regarding negotiations with Netflix.
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