"In a unanimous written determination, the Warner Bros. Discovery's board is advising shareholders to reject Paramount Skydance's "inadequate" hostile takeover bid. The letter to shareholders cites a number of concerns with the offer and reiterates its position that Netflix's offer remains superior. Netflix and WBD have entered into a merger agreement in early December after the WBD board selected its offer over other bidders."
"There are two key differences between the two options: Netflix is willing to pay $82 billion, but only for the Warner Bros., HBO and HBO Max divisions; Paramount Skydance's latest offer came in at $108 billion and is for all of WBD's assets, including CNN, HGTV, Food Network and many more. The Netflix deal leaves those assets in the hands of WBD shareholders, to be spun off as Discovery Global."
The Warner Bros. Discovery board unanimously advised shareholders to reject Paramount Skydance's hostile takeover bid, calling it inadequate and citing multiple concerns. Netflix offered $82 billion for Warner Bros., HBO and HBO Max, while Paramount Skydance offered $108 billion for all WBD assets including CNN, HGTV and Food Network. The Netflix deal would leave non-streaming assets to be spun off as Discovery Global. The board flagged financing risks given Paramount's roughly $14 billion market capitalization and the large debt required despite Larry Ellison providing about $40 billion in financing. The board noted Netflix stock could provide future value and that choosing Paramount would trigger over $4 billion in termination fees.
Read at Engadget
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