Paramount Would Have to Add $10B To Succeed With WBD Bid, Says Gerber

Ross Gerber President and CEO of Gerber Kawasaki Wealth and Investment Management says that Paramount would significantly raise the price they’re offering to succeed in a Warner Bros. takeover, and that the higher price, could be good for Netflix.

Paramount, the owner of its namesake studio and MTV, has been waging a public campaign to gather support for its proposal to buy Warner Bros., which owns HBO and CNN. Paramount went public with a $30-a-share cash bid on Dec. 8, three days after Warner Bros. accepted the deal with Netflix, which is only buying Warner Bros.’ studio and streaming businesses. Paramount has since amended its offer twice, most recently by including an assurance from billionaire Larry Ellison that he would personally guarantee $40.4 billion in equity financing and other commitments.  Paramount is controlled by Larry Ellison and his son David, a movie producer now assembling a media empire. (Source: Bloomberg)