"Warner Bros. Discovery's (WBD) board of directors has rejected the $108 billion hostile takeover bid from David Ellison's Paramount Skydance, calling the offer "illusory," and saying that Paramount had misled shareholders about its financing. Saying it wants to honor its initial agreement to sell to Netflix, WBD'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.""
"WBD's board said Paramount's tender offer remains "inferior to the Netflix merger" and noted that Netflix's $27.75-per-share offer for Warner Bros' Hollywood studios and streaming business "is a binding agreement with enforceable commitments, with no need for any equity financing and robust debt commitments." Netflix welcomed the move. "The Warner Bros. Discovery board reinforced that Netflix's merger agreement is superior and that our acquisition is in the best interests of stockholders," said Netflix co-CEO Ted Sarandos in a statement."
Warner Bros. Discovery's board rejected a $108 billion hostile takeover bid from Paramount Skydance, labeling the offer illusory and alleging financing misrepresentations. The board asserted that Paramount misled shareholders about a purported full backstop from the Ellison family and called the tender offer inferior to the existing Netflix merger. Netflix's $27.75-per-share offer for Warner Bros.' Hollywood studios and streaming business was described as a binding agreement with enforceable commitments, requiring no equity financing and supported by robust debt commitments. Netflix welcomed the board's decision. Paramount and Ellison's backers will review the rejection and may consider raising the offer.
Read at TechCrunch
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