"Paramount's offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed, Warner Bros. Discovery Chair Samuel Di Piazza Jr. said in a statement. In contrast, he added, the company's agreement with Netflix will offer superior value at greater levels of certainty."
"Warner Bros. again rejected a takeover bid from Paramount and told shareholders Wednesday to stick with a rival offer from Netflix. Warner's leadership has repeatedly rebuffed Skydance-owned Paramount's overtures and urged shareholders just weeks ago to back its the sale of its streaming and studio business to Netflix for $72 billion. Paramount, meanwhile, has made efforts to sweeten its $77.9 billion hostile offer for the entire company."
Warner Bros. Discovery rejected Paramount's takeover bid and urged shareholders to accept Netflix's $72 billion offer for the company's streaming and studio business. The Warner board determined Paramount's $77.9 billion hostile offer is not in the company's or shareholders' best interests and cited extraordinary debt financing, operational restrictions, and insufficient shareholder protections creating risks to close. Paramount increased its offer and secured a $40.4 billion equity guarantee from Larry Ellison and matched Netflix's $5.8 billion breakup fee. Warner asserted the Netflix agreement offers superior value and greater certainty. Shareholders have until Jan. 21 to tender their shares.
Read at www.mercurynews.com
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