David Ellison downplayed the need for Paramount to acquire Warner Bros. Discovery on a conference call with Wall Street analysts Monday after the company unveiled results that reflect the uphill climb it faces in revitalizing its film and television assets.
“It’s important to know that there’s no obligation for us. We view this as a buy-versus-build approach, and we absolutely have the ability to build to get where we want to go,” Ellison told Wall Street analysts when asked about Paramount’s pursuit of Warner Bros.’ Discovery. “We believe we can achieve our streaming goals, improve business efficiencies, and create long-term value and free cash flow across the building.” »
Ellison also pledged to be “disciplined” in his approach to seeking additional assets. It appears that Paramount has responded to two offers in recent weeks to acquire the entirety of Warner Bros. Discovery, including its linear cable networks.
“When it comes to M&A, everything for us is going to come down to this, does this accelerate those three core principles and for us,” Ellison said. “We are fortunate to have a balance sheet that allows us to be opportunistic when we believe M&A will accelerate our goals, but we are also disciplined long-term owner-operators. We will always approach things from the perspective of: How do we maximize shareholder value? And from an M&A perspective, it will always be: How can we accelerate and improve our North Star principles?”
More to come
