Company: WBD
Filing Date: 2025-12-08
Form Type: DFAN14A
Source: 0001193125-25-311455
Chunk: 10

Company: Warner Bros. Discovery, Inc.
Filing Date: 2025-12-08
Form: DFAN14A
Chunk 10
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’ve all been doing this long enough to where we respectfully don’t buy it. You know that a couple of things. And one is all linear is not equal, right? Broadcast is an incredibly stable business. Cable is in secular decline, being replaced by streaming, period. When you look at category ambiguity, saying that streaming is not a market, it’s a little bit like looking at the beverage market and saying that Coke and Pepsi can merge because Budweiser is a replacement to it. It’s just — it doesn’t make sense when you look at it, and it’s not the way regulators look at it. In addition to that, look at it through the lens of the creative talent community. Basically, great showrunners are not saying “I’m going to take the next Game of Thrones to TikTok or Instagram.” They take it to streaming services. And when you look at the consolidation of market share that would occur by combining Warner Bros. Discovery and Netflix, that is unprecedented market share. And so from that standpoint, we think that, that is deeply anticompetitive.

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 spglobal.com/marketintelligence                                                                     |     | 9 |

PARAMOUNT SKYDANCE CORPORATION M&A CALL DEC 08, 2025 And then in regards to the value of the network, we do value it at $1 a share. And when you look at the analysis of it — and again, one of the reasons why we are so interested in it and want to acquire it is because when you put together with our linear business, there are significant synergies, as we’ve discussed. And it will also be highly cash flow generative. And we can use that cash flow to invest in our North Star principles and invest that into more movies, more television series. So we said we want to make 30 movies a year exclusively for theatrical. We want to make more original series, invest in sports and invest in our growth businesses. And last thing I would say when you look at what the proposed combined company is, round numbers, it’s $70 billion in revenue, very quickly getting to [ $16 billion ] in EBITDA and generates $10 billion of cash flow. Anything you want to add that? Andrew M. Gordon Chief Strategy Officer, COO & Director No, I’d just say, Steve, look, on the linear networks — our linear networks and our broadcast business combined will