Warner Bros. Discovery has stated it will resume negotiations with Paramount Skydance after receiving a seven-day waiver from Netflix, allowing them to assess any potential issues in Paramount’s proposal.
The announcement follows Paramount’s informal proposal of an even higher share price, $31 per share, which increases its December offer of $27.75 per share.
In a letter to to the Paramount board, Warner Bros Chairman Samuel DiPiazza Jr. and CEO David Zaslav said, “Our Board has not determined that your proposal is reasonably likely to result in a transaction that is superior to the Netflix merger.”
“We continue to recommend and remain fully committed to our transaction with Netflix.”
In a statement to investors, Zaslav said, “Throughout the entire process, our sole focus has been on maximizing value and certainty for WBD shareholders. Every step of the way, we have provided PSKY with clear direction on the deficiencies in their offers and opportunities to address them. We are engaging with PSKY now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer.”
Di Piazza, Jr. added, “As announced today, we continue to believe the Netflix merger is in the best interests of WBD shareholders due to the tremendous value it provides, our clear path to achieve regulatory approval and the transaction’s protections for shareholders against downside risk. With Netflix, we will create a brighter future for the entertainment industry – providing consumers with more choice, creating and protecting jobs and expanding U.S. production capacity while increasing investments to drive the long-term growth of our industry.”
WBD also announced that a special shareholders’ meeting will take place on March 20, and its board continues to unanimously endorse the Netflix deal over Paramount’s offer.
Shares of Paramount and Warner Bros. Discovery each rose roughly 3% in premarket trading following the announcement.
By CEO NA Editorial Staff
