WBD Board Likely to Refuse Paramount’s Latest Proposal
The Warner Bros. Discovery (WBD) board is likely to reject Paramount Skydance’s latest takeover proposal. This decision comes as David Ellison, a key player in the negotiations, strives to secure assets deemed vital for a new Hollywood powerhouse. Reports from Bloomberg News indicate the board is preparing to formally dismiss the offer made on December 22.
Key Developments in the Negotiations
WBD recently announced a significant merger with Netflix, valued at over $80 billion. However, Paramount Skydance is not relenting and has made a tender offer directly to WBD shareholders. The competition between these two entertainment giants has created considerable buzz, particularly as WBD’s stock has surged over 170% this year.
WBD’s Upcoming Decision
The WBD board is set to convene next week to evaluate its response to Paramount’s offer. A spokesperson for WBD has refrained from commenting on the pending decision. The anticipated rejection aligns with the board’s ongoing view regarding suitable partners for Warner Bros. and HBO Max.
Paramount’s Proposal Details
Paramount’s amended offer mainly focused on financing aspects. Larry Ellison, the billionaire father of David Ellison, bolstered the case by providing an irrevocable personal guarantee of $40.4 billion as part of Paramount’s $108 billion cash offer. This proposal aims to acquire WBD, which includes popular networks like CNN and TNT.
- Initial Offer Date: December 22
- Proposed Valuation: $108 billion
- Current Share Price: Increased over 170% this year
- Breakup Fee: Increased to $5.8 billion
As the situation unfolds, it remains uncertain whether Paramount will enhance its offer beyond the current $30 per share pricing. Should the WBD board’s anticipated rejection motivate Paramount to adjust its bid, attention will shift to Netflix and its willingness to respond.
This ongoing tug-of-war reflects the dynamic nature of the media landscape, as companies vie for dominance in a rapidly evolving industry.
