Company: WBD
Filing Date: 2025-12-08
Form Type: DFAN14A
Source: 0001193125-25-311456
Chunk: 4

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-12-08
Form: DFAN14A
Chunk 4
---
.

FABER: Understood. It’s going to be a little while. This is going to be a fight that stretches, perhaps until the shareholder vote, until shareholders
are heard from, unless their voices are heard prior and Warner Bros. makes a different decision. I am curious, though. You know, you’re going to war here, so to speak, with Netflix, an incredibly well-endowed company that has the ability, it
would seem, to choose to raise its offer even more. Why bother when they conceivably could simply come back and raise their offer if they need to?

ELLISON: So, again, I think when you actually look at what the highest offer that is currently on the table, $30 in cash, the last time I checked, beats $23
in cash. And that’s $17.6 billion in cash more so, as we’ve said. We believe we have the superior offer. We’re taking that directly to shareholders. And we think that’s what they’re going to vote for.

FABER: I know, but that’s not a fair comparison. I mean there is stock. Netflix stock is worth right, it’s in, within the collar, it’s worth
at least 3.50 a share to the deal. I mean saying our cash versus theirs doesn’t seem a fair comparison, David.

ELLISON: So, respectfully, I
disagree. I mean, look, I mean, look, those shareholders can basically go buy Netflix cash on the, sorry, Netflix stock in the open market if they want to, and they’re going to be sitting there with a linear stub that’s valued at $1 a
share, which is a business that’s in secular decline that without the synergies that’s basically created by our deal, they will ultimately be holding something that is not worth anything. By every metric you can look at, we believe that
our offer is superior to shareholders.

FABER: Right, and again, we’re going to get a lot of debate around the value of that stub, because even
though it’s an incremental, let’s call it difference of a $2 it can go to the to the value judgment. Let me ask you about Paramount though, if in fact, you are successful here. You’re taking on a lot of debt, right? I mean,
it’s and you’re diluting your own shareholders significantly through an inclusion of what $41 billion in equity. Isn’t that correct?