GAMCO Investors chairman Mario Gabelli is “highly likely” to tender his clients’ Warner Bros. Discovery shares to Paramount Skydance as the company is taking its all-cash, $30 per share offer directly to shareholders.
“We believe that $30 cash is superior for my clients and the timeframe to get the money is superior to what Netflix is offering, which is a combination of cash, the stock that they’re offering with a collar and a SpinCo of Warner’s cable networks,” Gabelli told TheWrap.
At the same time, he emphasized that the battle between Paramount and Netflix is only in the “early innings.” Netflix has the ability to counter the $30 per share offer, while Paramount CEO David Ellison has previously said it is not his “best and final.”
Bloomberg, which was the first to report Gabelli’s interest in tendering his clients’ shares, estimates that his firm and funds hold nearly 5.7 million Warner Bros. shares, which were valued at about $160 million based on Tuesday’s closing price.
Gabelli’s comments come after David Ellison, his chief legal officer Makan Delrahim and Paramount chief strategy officer Andy Gordon held meetings with WBD shareholders in New York City on Tuesday in an effort to convince them to accept the tender offer.
Paramount’s tender offer will be open for 20 business days, or until Jan. 8, and Warner Bros Discovery’s board will need to respond within 10 business days, or by Dec. 22. Paramount also has the option to extend the tender offer.
Under the terms, shareholders have withdrawal rights that expire at 5 p.m. ET on Jan. 8. Those rights would be extended if Paramount extends the tender offer.
