"Warner Bros. Discovery board members delivered a blunt rejection of Paramount's revised hostile takeover bid on Wednesday, warning investors the offer was inadequate and still too risky. In a letter to shareholders on Wednesday, obtained and first reported by CNN, the WBD board rejected Paramount's revamped bid, insisting it falls well short of the certainty offered by its existing deal with Netflix. To effect the transaction, it intends to incur an extraordinary amount of incremental debt more than $50 billion through arrangements with multiple financing partners, the board wrote."
"Paramount has leaned heavily on the backing of Oracle billionaire Larry Ellison, who is bankrolling a large portion of the proposed $78 billion transaction. His son, Paramount CEO David Ellison, ignited the takeover battle last year with an unsolicited bid that included CNN and other assets. WBD CEO David Zaslav, instead ran a formal auction and accepted Netflix's offer of $27.75 per share in a deal the board is standing by. Paramount has publicly dangled a higher $30-per-share offer, but crucially has not raised that figure in its amended proposal, CNN reported."
Warner Bros. Discovery's board rejected Paramount's revised hostile takeover bid, calling the offer inadequate and materially riskier than the Netflix merger. The board emphasized that executing Paramount's proposal would require an extraordinary amount of incremental debt, estimated at more than $50 billion, financed through multiple partners. Oracle billionaire Larry Ellison is backing a large portion of Paramount's proposed $78 billion transaction, and Paramount CEO David Ellison initiated the unsolicited bid last year. WBD ran a formal auction, accepted Netflix's $27.75-per-share offer, and noted Paramount has not raised its amended proposal to the publicly mentioned $30 per share.
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