PSKY

As expected, Paramount has launched a hostile $30/share cash offer for all of $Warner Bros. Discovery(WBD.US), which would have far fewer regulatory issues than the $Netflix(NFLX.US) offer of $27.75/share ($23.25/share cash plus $4.50/share NFLX stock). Specifically, the $Paramount Skydance Corporation - CL B(PSKY.US) offer which is backed by the Ellison family, offers $18 billion more in cash than the NFLX offer, and would likely close much quicker than the NFLX offer. Importantly, the $Paramount Skydance Corporation - CL B(PSKY.US) offer is for all of WBD, including the global networks being spun off, while the NFLX offer imputes $3/share of value to spinoff of the WBD global networks business. We expect this to cause the NFLX offer for $Warner Bros. Discovery(WBD.US) to go even higher.