The board of Warner Bros. Discovery (WBD) unanimously recommended that shareholders reject Paramount’s hostile acquisition bid of $30 per share, arguing it would impose significant risks and costs. Paramount Skydance CEO David Ellison claims the $108.4 billion deal is preferable to one from Netflix, which offers a cash-and-stock transaction valued at $72 billion in equity. WBD believes the Netflix proposal provides better value and certainty regarding regulatory approval. The board expressed concerns over the financing of Paramount’s bid, which relies heavily on funding beyond the Ellison family. Despite Paramount’s potential for a revised offer, WBD is focused on evaluating Netflix’s cleaner deal structure. A shareholder vote is anticipated in the upcoming spring or summer. Both companies are preparing for potential regulatory scrutiny as they vie for WBD’s assets, emphasizing their competitive positions in the market.
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