Warner Bros. Discovery (WBD) The board of directors has rejected $108 billion hostile takeover bid David Allison of Paramount Skydance described the proposal as “illusory” and said that Paramount had misled shareholders about its financing.
saying that he wants to respect it Preliminary agreement to sell NetflixWBD’s board wrote in a letter to shareholders that Paramount “has consistently misled WBD shareholders that its proposed transaction has a ‘full backstop’ from the Ellison family.”
“This is not the case and has never happened,” the letter reads.
WBD’s board said Paramount’s tender offer is “inferior to the Netflix merger” and noted that Netflix’s $27.75 per share offer for Warner Bros.’s Hollywood studios and streaming business is “a binding agreement with enforceable commitments, including no equity financing and strong debt commitments.”
Netflix welcomed the move. Netflix co-CEO Ted Sarandos said, “The Warner Bros. Discovery board emphasized that the merger agreement with Netflix is the best fit and that our acquisition is in the best interests of stockholders.” a statement,
Paramount and Ellison’s backers, including his father, tech billionaire Larry Ellison, will review WBD’s rejection and determine whether to extend its offer. Diversity Report.
