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Stock impact report

How Netflix Forced Paramount to Cough Up More for Warner Bros. [Yahoo! Finance Canada]

Walt Disney Company (The) (DIS) 
Last walt disney company (the) earnings: 2/4 04:05 pm Check Earnings Report
Ellison had to add in other sweeteners too, including securing additional backing of his billionaire father, taking on $57.5 billion in debt and agreeing to pay the $2.8 billion breakup fee to Netflix. “We engaged with four bidders, which led to eight price increases and have thus far achieved a 63% increase in value versus the first offer received in September, delivering significant value for WBD shareholders throughout the process,” Warner Bros. Chief Executive Officer David Zaslav told investors on a recent call to discuss earnings. Some analysts thought Paramount would have to raise its bid to as high as $32 a share to win out after Warner Bros. signed a deal with Netflix and claimed its offer was superior. “If you had asked me at the beginning of this process, is this company going to sell for 30 bucks? I would've said, ‘No freaking way,'” said Douglas Arthur, an analyst at Huber Research Partners. Paramount's proposal values Warner Bros. at 12.5 times forward earnings Show less Read more
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