Paramount Skydance Corp. released a letter to Warner Bros. Discovery Inc. investors on Wednesday asking them to support its tender offer for the entertainment company's shares and not the rival Netflix Inc. merger.
Paramount Chief Executive Officer David Ellison said Warner Bros. investors were in for a 'long and bumpy ride' due to the “severe regulatory uncertainty” surrounding the Netflix bid. Paramount has lined up all the necessary financing for its $30-a-share, all-cash bid, he said.
"Paramount's offer not only delivers superior value and certainty, but also a much shorter and more certain path to completion,” Ellison wrote.
The Warner Bros. sale process was 'murky,' he said, and noted Netflix has lost more than $110 billion in market value since its third-quarter earnings release.
Netflix agreed to buy the Warner Bros. streaming and studio assets last week for $27.75 a share. On Dec. 8, Paramount came public with its bid, hoping to convince investors its offer is better.
Separately, President Donald Trump said any sale of Warner Bros. should involve the divestiture of its CNN news network. Netflix's plan includes a spin off of the Warner Bros. cable channels while Paramount is bidding for the entire company.
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