Warner Bros Discovery is reportedly planning to reject Paramount Skydance’s revised $108.4 billion hostile bid.
The decision is tipped to allow Warner Bros to stay on course for a competing cash-and-stock deal with Netflix.
Earlier this month, the Warner Bros. board countered that Paramount’s most recent offer of a $40.65 billion equity commitment from “an unknown and opaque” Lawrence J. Ellison Revocable Trust, whose assets and liabilities are not publicly disclosed and are subject to change.
Samuel A. Di Piazza, Jr., Chair of the Warner Bros. Discovery Board of Directors, told shareholders: “Following a careful evaluation of Paramount’s recently launched tender offer, the Board concluded that the offer’s value is inadequate, with significant risks and costs imposed on our shareholders. This offer once again fails to address key concerns that we have consistently communicated to Paramount throughout our extensive engagement and review of their six previous proposals. We are confident that our merger with Netflix represents superior, more certain value for our shareholders and we look forward to delivering on the compelling benefits of our combination.
Warner Bros. previously stated that the Netflix agreement is considered superior in value because it offers WBD shareholders $23.25 in cash and $4.50 in Netflix common stock.
Leading up to the hostile bid, Paramount raised its regulatory reverse termination fee and extended its tender offer deadline, while the $30-per-share all-cash value stayed unchanged.
By CEO NA Editorial Staff
