"Warner Bros. Discovery's board has unanimously turned down Paramount Skydance's latest attempt to acquire the studio, saying its revised $108.4-billion US hostile bid amounted to a risky leveraged buyout that investors should reject. In a letter to shareholders on Wednesday, the company's board said Paramount's offer hinges on "an extraordinary amount of debt financing" that heightens the risk of closing."
"Paramount's financing plan would saddle the smaller Hollywood studio with $87 billion in debt once the acquisition closed, making it the largest leveraged buyout in history, the Warner Bros. board told shareholders after voting against the $30-per-share cash offer on Tuesday. The letter accompanied a 67-page amended merger filing where it laid out its case for rejecting Paramount's offer. WATCH | More on Paramount's offer to Warner Bros.:"
Warner Bros. Discovery's board rejected Paramount Skydance's revised $108.4-billion hostile bid, citing heavy reliance on debt financing and heightened closing risk. The board reaffirmed commitment to Netflix's $82.7-billion offer for the studio and other assets. Paramount's financing plan would leave the combined company with about $87 billion of debt, which the board called the largest leveraged buyout in history. Paramount secured an irrevocable personal guarantee from Oracle founder Larry Ellison to back $40.4 billion in equity and matched a $5.8-billion regulatory breakup payout offered by Netflix. Major entertainment franchises and a vast content library are central to the takeover battle.
Read at www.cbc.ca
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