"Warner Bros. again rejected Paramount's latest takeover bid 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 sweetened its $77.9 billion offer for the entire company and gone straight to shareholders with a hostile bid."
"Late last month Paramount announced an "irrevocable personal guarantee" from Oracle founder Larry Ellison-who is the father of Paramount CEO David Ellison-to back $40.4 billion in equity financing for the company's offer. Paramount also increased its promised payout to shareholders to $5.8 billion if the deal is blocked by regulators, matching what Netflix already put on the table. The battle for Warner and the value of each offer grows complicated because Netflix and Paramount want different things."
Warner Bros. Discovery rejected Paramount's hostile takeover bid and recommended shareholders support Netflix's $72 billion offer for Warner's studio and streaming operations. Paramount sweetened a $77.9 billion bid for the entire company and pursued a direct, hostile appeal to shareholders. Paramount secured an "irrevocable personal guarantee" from Larry Ellison to back $40.4 billion in equity financing and matched Netflix's $5.8 billion regulatory-breakup payout. Netflix's proposal covers only studio and streaming assets while Paramount seeks the whole company, including networks like CNN and Discovery. Either merger would face significant antitrust review by the U.S. Justice Department and overseas regulators.
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