Warner Bros. Discovery has instructed its investors to turn down Paramount Skydance’s “inferior” revised offer to acquire the business. The Warner Bros. board has called on its shareholders to reject the Paramount bid for the second time in less than a month. On December 5, the board said that Netflix would purchase the company’s film and streaming divisions for $72 billion (£54 billion).
The Warner Bros. board stated that the offer did not satisfy the requirements for a “superior proposal” and was not in the best interests of shareholders. Paramount proposed to purchase all Warner Bros. properties, including its TV networks, such as CNN and TNT, and claimed that its bid was “superior” than the Netflix agreement.
Samuel Di Piazza Jr., the chair of the Warner Bros. board of directors, stated that the board was still united in favor of the Netflix purchase.
Terms including an excessive amount of debt financing that poses risks to closing and a lack of protections for our shareholders in the event that a transaction is not completed make Paramount’s offer inadequate.
Our definitive contract with Netflix will offer more value at greater levels of certainty, without the significant hazards and costs Paramount’s offer would impose on our shareholders,” he stated in a statement.
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