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RedBird founder challenges Warner Bros. Discovery board over rejected Paramount offer
Gerry Cardinale, founder of RedBird Capital Partners, has sharply criticized the Warner Bros. Discovery board following its rejection of Paramount’s $108.4 billion bid. Cardinale accused the board of distorting the facts surrounding the financial structure of the offer, calling its statements “a false narrative” designed to mislead investors.
According to Cardinale, the Paramount proposal valued at $30 per share in cash was fully supported by a solid financing plan anchored by Larry Ellison’s revocable trust, which he said had never failed to deliver in decades of high-value transactions. The Warner Bros. Discovery board dismissed this claim, suggesting the trust’s assets could be withdrawn at any time and that its liability cap of $2.8 billion made the arrangement uncertain.
Cardinale argued that such concerns were unfounded and that Ellison’s long-standing business reputation spoke for itself. He also noted that the Paramount consortium had met every condition the board had set, including price, regulatory considerations, and structure. “They asked us to meet certain marks, and we did,” he told Puck News. “Then, without warning, they changed the rules.”
Warner Bros. Discovery’s board instead endorsed Netflix’s $82.7 billion mixed cash-and-stock proposal, citing clearer terms and lower execution risk. Netflix’s binding offer includes a $5.8 billion termination fee in case of regulatory failure, while Paramount’s proposal did not match that level of guarantee.
Shareholders now face a key decision deadline of January 8 to tender their shares to Paramount’s offer, although the period could be extended. Harris Associates, one of Warner Bros. Discovery’s largest investors, has indicated that it may support a revised Paramount offer if outstanding concerns regarding the trust’s structure are properly addressed. The outcome could determine the future of one of the entertainment industry’s largest potential mergers, testing shareholder confidence against board oversight in high-stakes corporate governance.
