Warner Bros. Discovery rejects Paramount's bid again, calls it a 'leveraged buyout' | TechCrunch

"The studio on Wednesday said its board had unanimously rejected Paramount Skydance's revised $108.4 billion bid, calling the proposal a "leveraged buyout" that would saddle the company with $87 billion in debt."

"WBD urged them to reject the offer, saying the "extraordinary amount" of debt Paramount would need to raise heightens the risk of the deal falling through, and instead recommended they vote in favor of its earlier, $82.7 billion deal with Netflix for its film and TV studio asserts."

"[Paramount] is a company with a $14 billion market capitalization attempting an acquisition requiring $94.65 billion of debt and equity financing, nearly seven times its total market capitalization [...] This aggressive transaction structure poses materially more risk for WBD and its shareholders when compared to the conventional structure of the Netflix merger,"

Warner Bros. Discovery's board unanimously rejected Paramount Skydance's revised $108.4 billion offer, calling it a leveraged buyout that would impose about $87 billion in debt. WBD urged shareholders to reject Paramount's proposal, citing the extraordinary amount of debt required and heightened risk of the deal collapsing, and recommended support for a prior $82.7 billion Netflix cash-and-share deal for its film and TV studios. Paramount initially offered $30 per share in cash, was called illusory by WBD, then added a $40 billion guarantee and proposed $54 billion in debt financing.

Read at TechCrunch