Warner Bros Discovery Rejects Paramount, Upholds Netflix Merger
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LOS ANGELES — Warner Bros Discovery’s board on Wednesday rejected Paramount Skydance’s $108.4 billion hostile tender offer, saying the bid lacked adequate financing assurances and that claims it was backstopped by the Ellison family were inaccurate. The board recommended shareholders uphold its binding merger agreement with Netflix, valuing WBD assets at about $82.7 billion and offering $27.75 per share, which it said provided more certain financing and value. Warner cited significant risks in Paramount’s proposal and affirmed confidence in delivering benefits through the Netflix combination. The board expects regulatory review and shareholder vote. Based on 6 articles reviewed and supporting research.
More context
Timeline
- 1. Dec. 5 — Netflix announces agreement to buy Warner Bros Discovery for about $82.7 billion.
- 2. Dec. 8 — Paramount Skydance launches an all-cash $108.4 billion tender offer (three days later).
- 3. Dec. 17 — Warner Bros Discovery board issues a letter rejecting Paramount's offer, citing financing guarantees.
- 4. Dec. 17 — Board recommends shareholders reject Paramount’s tender and support the binding Netflix merger.
- 5. Following the board letter — regulatory review and shareholder votes remain necessary for completion.
Sources
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