Warner Bros. Board of Directors Discovery has once again rejected Paramount Skydance's amended tender offer.
In a press release, the board confirmed that it had “unanimously determined” that Paramount Skydance's amended proposals were “not in the best interests of WBD and its shareholders” and did not meet the criteria for a “superior proposal” under the terms of its merger agreement with Netflix.
Netflix announced that it is going to buy Warner Bros, including the company's gaming division, for $82.7 billion. last month. Soon after this, Paramount Skydance has announced a hostile takeover of all of Warner Bros Discovery.which his board quickly rejected. This latest denial was an amendment to that application.
“The Board unanimously determined that Paramount's latest proposal continues to be inferior to our agreement to merge with Netflix in many key areas,” said Samuel A. DiPiazza Jr., chairman of Warner Bros. Discovery.
“Paramount's offer continues to provide insufficient value, including conditions such as an extraordinary amount of debt financing that creates closing risks and no protection for our shareholders if the transaction is not completed. Our binding agreement with Netflix will offer greater value with a higher level of certainty, without the significant risks and costs that Paramount's proposal would impose on our shareholders.”
The board has now sent a letter to shareholders with further details about its recommendation, citing the proposal's lack of value and “increased risk of not closing compared to Netflix.”[‘s deal]”
Read more in our article, What does the Netflix deal mean for Warner Bros' gaming division?
