Warner Bros. Discovery has formally advised its shareholders to reject Paramount Skydance's $108.4 billion acquisition offer.
In a public message published on his websiteboard of directors of Warner Bros. Discovery “unanimously determined that the tender offer was issued […] This is not in the interests of WBD and its shareholders.”
The company also said it conducted another review and concluded that Paramount's Skydance tender offer “continues to be inferior to Netflix's merger proposal,” adding that none of the reasons put forward against the sale “would come as a surprise to PSKY, given our clear and oft-repeated feedback on their six previous proposals.”
“The terms of the Netflix merger are excellent. The PSKY proposal does not provide adequate value and imposes numerous significant risks and costs on WBD,” the board said. “The value we have achieved for shareholders through the Netflix merger is exceptional by any measure.
“PSKY has continually misled WBD shareholders by claiming that the proposed transaction has the 'full support' of the Ellison family. This is not and never has been the case.”
“After carefully evaluating Paramount's recently announced tender, the Board of Directors has determined that the price of the offering is inadequate and exposes our stockholders to significant risks and costs,” said Samuel A. DiPiazza, Jr., chairman of Warner Bros., in a statement. Discovery.
“This proposal once again fails to address the key concerns that we have consistently communicated to Paramount throughout our extensive engagement and review of their six previous proposals. We are confident that our merger with Netflix represents superior, stronger value for our shareholders, and we look forward to realizing the compelling benefits of our combination.”
Ted Sarandos, co-CEO of Netflix, welcomed the news: speaking: “Advice from Warner Bros. Discovery has confirmed that the Netflix merger agreement is superior and that our acquisition is in the best interests of our shareholders.
“This was a competitive process that delivered the best results for consumers, creators, shareholders and the entertainment industry as a whole. Netflix and Warner Bros. complement each other, and we are excited to combine our strengths with their theatrical film division, world-class television studio and the iconic HBO brand, which will continue to focus on prestige television. We are also fully committed to releasing Warner Bros. films. in theaters with a traditional window so that audiences everywhere can watch them on the big screen.”
Netflix announced that it is going to buy Warner Bros, including the company's gaming division, for $82.7 billion. earlier this month. Soon after this, Paramount Skydance has announced a hostile takeover of all of Warner Bros Discovery..
Read more in our article, What does the Netflix deal mean for Warner Bros' gaming division?
