"Some of Warner Bros Discovery's biggest investors are split on Paramount Skydance's sweetened offer for the storied movie studio owner, giving the smaller media company a fighting chance at winning over shareholders. Investors have until January 21 to accept Paramount's latest $108.4bn proposal, paying them $30 a share, an offer the Warner Bros board says is inferior to its agreement to sell to Netflix."
"Though Paramount's offer, on its face, is higher, Warner Bros said it does not cover the $2.8bn breakup fee it would have to pay Netflix, $1.5bn in fees it would owe its bankers and another $350m in financing costs. A smaller investor, Yussef Gheriani, chief investment officer of IHT Wealth Management, which has about 16,000 Warner Bros shares, said in an email that the board's decision to reject Paramount's offer makes sense as the increase in total value may not be worth breakup fees and borrowing costs."
Paramount Skydance submitted a $108.4 billion offer paying $30 per share with a January 21 acceptance deadline. Warner Bros' board maintains the Paramount proposal is inferior to the existing agreement to sell to Netflix, citing uncovered costs and financing shortfalls. Warner Bros says Paramount's bid would not cover a $2.8 billion breakup fee to Netflix, $1.5 billion in banker fees and $350 million in financing costs, and would leave the combined company with $87 billion in debt. Major investors are split: some back the board, while others, including Pentwater, say the board breached fiduciary duty by rejecting Paramount's offer.
Read at www.aljazeera.com
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