Company: WBD
Filing Date: 2025-12-08
Form Type: DFAN14A
Source: 0001193125-25-311455
Chunk: 4

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-12-08
Form: DFAN14A
Chunk 4
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 Using a 4.5x EBITDA multiple in line with Wall Street consensus for WBD’s Global Networks business, Netflix mix of cash and stock equates to $28.75 per share, only $1 above their stated value offer. Across any reasonable valuation framework, our offer delivers greater value with greater certainty in all respects. To further go through the analysis, we are centering the linear networks valuation of $1 per share, implying a total Netflix offer at $28.75, as I already mentioned. Our view is anchored again on Wall Street’s consensus estimate for Global Networks of 4.5x. Wall street also values Global Networks direct competitor, Versant, Comcast Cable Networks spinout and the closest peer to WBD’s Global Networks; at 4 to 5x forward EBITDA. Based on the global networks expected 3.5x net debt-to-EBITDAratio and a 4.5x enterprise value multiple, one can imply there is less than 1x EBITDA of value in the business for equity holders, of roughly $1 a share. Versant is also expected to be far better capitalized with materially lower leverage than WBD’s global networks. Their expected 1.25x net debt-to-EBITDAratio leaves 3x EBITDA value in the business for equity holders versus 1x for Global Networks — for Warner Bros. Discovery. It’s again, they have not disclosed how it’s valuing the stub despite its significance to the economics of the Netflix proposal. Netflix has not only cash but two pieces of paper, their stock and WBD Global Network stock. In addition, the purchase price adjustment based on leverage that can shift between studios and streaming versus Global Networks, whereas our bridge financing will fully finance the existing bridge loan and backstops the full debt of WBD.

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 spglobal.com/marketintelligence                                                                     |     | 5 |

PARAMOUNT SKYDANCE CORPORATION M&A CALL DEC 08, 2025 How is it they didn’t explain the mechanism by which debt between Global Networks and studios and streaming would be allocated to the extent that the banks and the market cannot fully finance the Global Networks business? This is a risk in the Netflix proposal. Paramount’s proposal delivers more value to WBD’s shareholders with its timeline and certainty to close, as we’ve already mentioned. Timing matters because it directly affects the