Paramount Skydance CEO David Ellison has backed out of the New York Times’ DealBook Summit as the media giant is involved in a bidding war for Warner Bros. Discovery.
“Unfortunately, he is, as you have read in the headlines, in real time, negotiating as we speak to try to buy Warner Bros. Discovery,” DealBook founder Andrew Ross Sorkin told attendees on Wednesday. “I spoke to him on the phone and he has now promised us that he’s going to be here next year and he’s going to be on the stage with his father Larry Ellison.”
Paramount has submitted multiple bids for all of WBD, including three which were rejected for being too low. Its latest bid is an all-cash offer primarily backed by the Ellisons, which also includes contributions from three Middle Eastern sovereign wealth funds and debt financing from Apollo Global Management.
TheWrap previously reported that Paramount was in talks with Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority (QIA) and the Abu Dhabi Investment Authority (ADIA) about investing in its bid despite the media giant’s previous public denials.
The involvement of foreign investors in the latest bid could require approval from the Committee on Foreign Investment in the United States (CFIUS) if they were to obtain 25% or more voting interest in a U.S. company and a foreign government holds a 49% or greater voting interest in that foreign investor.
The Ellisons are expected to maintain majority ownership in a combined company and foreign investors’ involvement is not expected to reach the level that would trigger a regulatory review, a person familiar with the bid told TheWrap.
Financial terms of the bid could not immediately be learned. Representatives for Paramount, Apollo and ADIA declined to comment. PIF and QIA did not immediately return TheWrap’s request for comment.
Meanwhile, Netflix and Comcast have submitted bids for the company’s studio and streaming business. Specific financial terms of the bids could not be immediately learned, though Netflix’s latest offer is a majority cash bid.
Comcast’s bid would look to merge Warner Bros.’ streaming and studio business with NBCUniversal in a deal that would be a combination of cash and stock. It has also offered WBD CEO David Zaslav a management role at the combined company.
Paramount, Netflix and Comcast submitted the second round of bids on Dec. 1 after WBD asked them to submit improved offers following the first round of non-binding bids last month. It is unclear if the board will ask for a third round of bids or enter exclusive talks with one of the companies as a next step.
In addition to continuing on with its planned split into Warner Bros. and Discovery Global, which is on track for completion in April, the company’s board is also considering separate transactions for the two companies or a deal for the entire combined company. WBD said it would also consider an alternative separation structure that would enable a merger of Warner Bros. and spin-off of Discovery Global to its shareholders.
A final decision is expected to be made around Christmas.
