Company: WBD
Filing Date: 2025-12-08
Form Type: DFAN14A
Source: 0001193125-25-311455
Chunk: 5

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-12-08
Form: DFAN14A
Chunk 5
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 value shareholders actually receive. Netflix’s proposal is expected to take meaningfully longer to close, which reduces its present value, which is important relative to when shareholders can get their money. 6 months of additional time to close versus Paramount’s proposal lowers the value of the cash and Netflix stock components of their offer by roughly $1.25 per share. That’s if it’s only 6 months beyond what we’ve committed to, to close, taking it from $28.75 to about $27.50 on a present value basis. And that is again, only 6 months after when we believe our deal will close on the outside date. There’s also additional risks tied to closing certainty in the noncash elements of Netflix proposal, including, as I’ve already mentioned, the Global Networks value. Let’s talk about regulatory certainty, and I’ll start here, and then I’ll hand it over to David. Netflix’s proposal would solidify streaming domination and the end of streaming wars, combining Netflix and HBO Max would give a 43% share of all global SVOD subscribers and over 30% of U.S. subscribers. With HBO Max 125 million subscribers and Netflix’s over 300 million, it would be the largest streaming service platform on the planet by far, with over 400 million subscribers and even greater number of subscribers at the planned closing, which is 2 years from today. The deal will be harmful to the film and TV industry, undermine creative talent, threaten higher prices for consumers and threaten the future of theatrical releases. Numerous constituencies, including the Writers Guild of America, has already issued a statement that the deal must be blocked. Hollywood legends like James Cameron and Jane Fonda have spoken out, describing the deal as a disaster for theatrical films. Paramount’s proposal provides vastly superior certainty and projections for WBD shareholders and the Hollywood community protections. PSKY and Warner Bros. Discovery is pro-competitiveand procreative talent. It creates a more robust streaming platform to compete with the dominant tech giants like Netflix and others. Paramount is committed to growing the film and TV output of both businesses, including a theatrical slate of 30-plustheatrical releases per year. We’re going to satisfy the needs of the moviegoing public. Our proposal offers greater regulatory certainty and a faster path to the required approvals, which I’ll now turn it over to Dave. David Ellison Chairman & CEO Before going into that, I want to get into a little bit of the timeline as well. On December 3, WBD provided feedback to