US EditionWarner Bros. Discovery Officially Rejects Paramount’s Revised Offer, Stands by Netflix Deal
Warner Bros. Discovery board cited Paramount's $87 billion debt plan as risky and inferior, backing Netflix’s $72 billion offer with clearer financing and fewer execution risks.
- On Wednesday, Warner Bros. Discovery's board rejected Paramount's $108.4 billion bid, reaffirming support for Netflix, with Di Piazza stating, `The Board unanimously determined that Paramount’s latest offer remains inferior to our merger agreement with Netflix across multiple key areas.`
- The board argued the offer hinges on an extraordinary $87 billion of pro forma debt and a $40.4 billion personal guarantee from Larry Ellison amid risky LBO financing.
- On the economics, WBD noted abandoning the Netflix deal would cost about $4.7 billion, while Netflix’s offer values WBD at $27.75 per share and has a $400 billion market cap.
- Shareholders face a Jan. 21 tender deadline to sell to Paramount, while the rejection keeps Warner on track with Netflix amid likely DOJ and international regulatory scrutiny.
- Paramount's scale mismatch means its $14 billion market cap acquisition requiring $94.65 billion financing threatens WBD's planned Discovery Global spinoff and pressures the Ellison family.
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Warner Bros Chairman Defends Netflix Deal As Superior Over Paramount's Offer Despite Larry Ellison's Guarantee: 'He Didn't Raise The Price' - Warner Bros. Discovery (NASDAQ:WBD)
Mass media conglomerate Warner Bros Discovery Inc.’s (NASDAQ:WBD) Chairman Samuel DiPiazza reaffirmed the company's commitment to its merger agreement with Netflix Inc. (NASDAQ:NFLX), brushing aside recent efforts by Paramount Skydance Corp. (NASDAQ:PSKY), despite Larry Ellison's personal guarantee backing the rival bid. Netflix Offers ‘Compelling Value,’ Shareholder Protections DiPiazza said that the Warner Bros management was sticking with Net…
It's about the future of Hollywood: Netflix wants to take over the film company Warner Bros. Paramount wanted to spark in between with a higher offer. However, the Warner board of directors expresses concerns.
Warner Bros. rejects Paramount's revised takeover bid
Warner Bros. Discovery's board of directors has unanimously rejected a revised acquisition offer from Paramount Skydance, declaring the proposal "inadequate" and urging shareholders instead to support its existing agreement with Netflix. Paramount's updated tender offer valued at about $108.4?billion included changes meant to address earlier concerns, such as a personal equity guarantee from Oracle co?founder Larry Ellison and a higher breakup f…
The business world is helping more than one chapter in the dispute by Warner Bros. Discovery. The company administration again rejected a purchase proposal from Paramount Skydance, strengthening its commitment to the...
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