Warner Bros Discovery rejects Paramount’s hostile takeover bid, calls merger with Netflix ‘superior’
Warner Bros. Discovery on Wednesday (December 17) rejected a hostile takeover bid that Paramount launched last week, aiming to derail giant Netflix’s plans to acquire the Hollywood studio and owner of CNN. AFP report.
Warner Bros. said it favored the Netflix merger because the terms were better, adding that Paramount’s offer “once again fails to address the significant concerns we have consistently raised throughout our extensive engagement and review of six previous proposals,” according to a statement from the company.
“We are confident that our merger with Netflix represents superior, more definitive value for our shareholders,” the statement said.
The move comes after Paramount Skydance launched a hostile bid to acquire Warner Bros. Discovery on Monday, December 8, valued at $108.4 billion. Just a few days ago, Netflix made a $72 billion offer to acquire the movie studio and streaming business.
Netflix’s agreement with WBD
Netflix announced on December 5 that it had signed a deal with Warner Bros. Discovery to acquire the film and television studio for approximately $83 billion; This was the entertainment industry’s largest consolidation deal this decade.
While the industry expected Netflix to react to the hostile bid by increasing its own bid, it didn’t look like the industry would choose that path.
Netflix co-CEO Ted Sarandos previously said: “We made a deal and we’re incredibly pleased with the deal. We think it’s great for our shareholders. It’s great for consumers. We think it’s a great way to create and protect jobs in the entertainment industry.” His words indicated confidence in the agreement.
According to a report prepared by access pointWarner Bros. had previously asked its shareholders to reject Paramount’s acquisition offer, stating that Netflix’s rival offer would be better for customers and creators.
Paramount offered to offer $30 per Warner share to Netflix’s $27.75. However, unlike Paramount’s offer, Netflix’s offer does not include the purchase of Warner Bros’ cable operations.
