Paramount Global won the highly coveted race to acquire Warner Bros. Discovery. The agreement, which is expected to be completed in the third quarter of this year, will create a global media and entertainment company with a presence in more than 200 countries.
After months of speculation and an intense dispute between three protagonists in the sector, the outcome of the race for . The proposal presented by valued at 110 billion dollars, ended up victorious, removing of the race.
The agreement between the two giants will give rise to a “leading global media and entertainment company, focused on expanding consumer offerings and valuing creative talent around the world.”according to a set released by the two companies.
Paramount Global will pay 31 dollars for each share from Warner Bros. Discovery, in an operation that should be completed in third trimester this year. If the deal is not closed by September 30thWBD shareholders will receive additional compensation of $0.25 per share for each quarter of delay, until the transaction is completed.
Commitments with cinemas and distribution
The merged company will produce at least 30 films per year. All will have their cinema debut, with a minimum window of 45 days before moving to video on demand (VOD), which can take up to 60-90 days for the most popular titles.
The studios will continue to license content for other platforms and buy independent productions, then follow the usual distribution for the domestic market, maintaining viewing appointments in all countries where they operate, including France.
Portfolio with thousands of contents
The merger will reinforce the entertainment, sport and information channels. The company will have a presence in more than 200 countrieswith paid and free channels, reinforcing local production and global distribution.
The portfolio will include more than 15 thousand films and thousands of hours of TV serieswith large franchises known worldwide as “Harry Potter”, “Mission: Impossible”, “Lord Of The Rings”, “Game of Thrones”, “Universo DC”, “Transformers” e “SpongeBob SquarePants”.
The new company will also have a large suite of sports rights, including NFL, Olympics, UFC, PGA Tour, NHL, Big Ten, Big 12, NCAA college basketball e Champions League.
Netflix refused to increase offer for WBD
Dispute for WBD started last year
In recent months, Netflix, Warner Bros. Discovery and Paramount Global were involved in a public dispute on which proposal guaranteed better regulatory conditions and greater value for WBD shareholders.
It all started on December 5th, when Netflix and Warner Bros. Discovery announced the deal through a set. The cash and stock proposal was valued at $27.75 per WBD share, giving the company a total value of 82.7 billion dollarsincluding debts.
Paramount Global had previously presented several proposals through WBD’s board of directors, which were rejected. Faced with this refusal, Paramount came forward with a “hostile offer”directly addressing WBD shareholders to try to stop Netflix’s proposal.
Paramount’s counterproposal, valued at (93.2 billion euros), covered the entirety of Warner Bros. Discovery, including its cable channels.
