Warner Bros. Discovery Urges Investors to Reject Paramount’s Hostile Bid.
Warner Bros. Discovery has officially advised its shareholders to reject the hostile takeover bid from Paramount Skydance and the Ellison family. The board, in a statement, emphasized that they believe the Paramount offer does not serve the best interests of Warner Bros. Discovery (WBD) and its shareholders.
Details of the Hostile Bid
Paramount launched a bid exceeding $108 billion for Warner Bros. Discovery soon after the latter announced plans to sell its coveted assets to Netflix. Paramount CEO David Ellison insists that their proposal offers superior value to WBD shareholders and promises a clearer path to the transaction.
Response from Warner Bros. Discovery
Despite this, Warner Bros. Discovery’s leadership, including Chair Samuel Di Piazza, maintains that Paramount’s offer fails to address ongoing concerns raised in discussions about previous proposals. The board has decided to pursue its agreement to merge with Netflix, stating that this deal is more favorable.
- Proposal Value: Paramount’s offer worth over $108 billion.
- WBD Stance: The offer is not in the company’s best interests.
- Netflix Deal: WBD prefers its merger agreement with Netflix, citing superior terms.
Market Reactions and Additional Developments
In a recent statement, Netflix welcomed WBD’s decision to reject the Paramount bid. Co-CEO Ted Sarandos indicated that the merger agreement with Netflix is advantageous for all stakeholders involved.
Furthermore, Jared Kushner’s private equity firm recently withdrew support from the Paramount bid, which adds additional uncertainty to the offer. Warner Bros. Discovery also revealed in securities filings that another undisclosed bidder proposed to acquire its cable networks for $25 billion in cash and a 20% stake in WBD’s Streaming & Studios unit.
Stock Market Impact
The developments have impacted stock prices. As of 12:30 p.m. ET, WBD shares fell 4.5%, while Netflix shares increased slightly. Paramount’s shares also experienced a decline of approximately 1.5%.
In summary, Warner Bros. Discovery’s board firmly opposes the hostile takeover by Paramount, reinforcing its commitment to the planned merger with Netflix, which it views as the more beneficial option for shareholders.
