"Warner Bros Discovery (WBD) is reportedly weighing reopening sales talks with Paramount Skydance, in a move that could spark a fresh bidding war with Netflix for the Hollywood film and TV company. Members of the board of WBD are discussing whether to re-engage with Paramount, which is pursuing a hostile $108.4bn (76.8bn) cash takeover directly with shareholders in a bid to derail an agreed deal with Netflix, according to Bloomberg."
"Paramount moved last week to bolster its political lobbying power by appointing Rene Augustine, a former attorney in the Trump administration, as its senior vice-president of global public policy. David Ellison, the chair and chief executive of Paramount, said its dogged pursuit of WBD showed its strong and unwavering commitment to delivering the full value WBD shareholders deserve. WBD responded by saying that it was reviewing the amended offer from Paramount."
"However, so far shareholders representing less than 2% of WBD's stock have been committed to Paramount's hostile bid, and the company has already twice extended its deadline, which now stands at 20 February. If WBD decides to formally open talks with Paramount it would need to notify Netflix first, and such a move is likely to kick off a further sweetening of offers. In January, Netflix sweetened its offer for the studios and streaming businesses of WBD by making it an all-cash deal."
Warner Bros Discovery's board is evaluating whether to reopen sales talks with Paramount Skydance, which is pursuing a hostile $108.4bn cash takeover directly with shareholders to disrupt an agreed deal with Netflix. Paramount has offered to cover a $2.8bn fee owed to Netflix if WBD withdraws, to backstop refinancing that removes $1.5bn in costs, and to pay a ticking fee of about $650m in cash each quarter if the deal is not closed by year-end. Paramount appointed Rene Augustine to strengthen lobbying efforts. Some smaller shareholders are pressing WBD to engage Paramount, though less than 2% of stock has committed to the hostile bid. WBD extended Paramount's deadline twice to 20 February. If talks reopen WBD must notify Netflix, likely prompting further bid sweetening; Netflix converted its offer to all cash in January.
Read at www.theguardian.com
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