Paramount’s David Ellison is still considering its options for taking over Warner Bros. According to a new report from Reuters, one of those options is to go straight to the shareholders and offer them a buyout of around $60 billion.
After Warner Bros.’ David Zaslav announced a strategic plan to split the media conglomerate into two separate entities, Ellison made an offer to buy it all, which Warner Bros. refused. The proposal to the board would involve Paramount acquiring a company with a market value more than double its own, with Warner Bros. market value at over $40 billion, compared to Paramount’s approximately $19 billion.
After the bid was rejected, Paramount then reportedly began coming up with alternative plans for the acquisition, including raising the offer amount, seeking additional financial backing to make a stronger bid, or going above the board and making an appeal directly to the shareholders.
Complicating Paramount’s plans is the fact that Zaslav is committed to the idea of Warner Bros. becoming a divided company, separating the streaming and studios company, including HBO Max and a massive film library, from the WB-owned cable networks. As the Reuters report points out, entertaining conversations about selling the whole business could make it more difficult for Warner Bros. to break up the company without tax penalties if the sale doesn’t go through.