"Paramount Skydance isn't surrendering in its quest to buy WBD, even though its offers have been rejected eight times in favor of Netflix's bid. Paramount CEO David Ellison has criticized WBD for not selecting what he's called "by far the superior offer." WBD has fired back, accusing Paramount of threatening lawsuits and leaking to the press. The company's board of directors said this week in a letter to shareholders that Paramount "has repeatedly failed to submit the best proposal for WBD shareholders despite clear direction.""
"Although Paramount says its all-cash, $30-per-share offer for all of WBD provides more value and less risk than Netflix's $27.75-per-share bid for WBD's studio and streaming assets, the company could up the ante. Several media insiders, including Disney's former top dealmaker, expect a renewed bidding war for WBD. Their view got a boost when Paramount disclosed in a filing that Ellison had texted WBD CEO David Zaslav, saying that Paramount's $30-per-share proposal wasn't its "best and final" offer."
"WBD investors also seem to be counting on more fireworks, given that its stock is trading north of $28.50, close to $1 per share above Netflix's agreed-upon purchase price. That suggests shareholders believe either Ellison and company or Netflix will fork over more money before WBD changes hands."
Paramount Skydance has been rejected eight times but still seeks to disrupt Netflix's transaction for Warner Bros. Discovery. CEO David Ellison calls his $30-per-share all-cash offer superior while WBD's board accuses Paramount of threats, leaks, and failing to submit the best proposal. Paramount signaled the $30-per-share bid was not its "best and final" offer, prompting media speculation of a renewed bidding war. WBD shares trading above Netflix's agreed price indicate investor expectations of higher offers or competitive action before control of WBD changes hands.
Read at Business Insider
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