- Warner Bros. Discovery chairman, Samuel Piazza, noted that the Paramount bid still carries significant risks
- That landmark agreement, estimated at nearly $83 billion, would see Netflix acquire Warner Bros.’ film and television
- The board stressed that Netflix’s offer, announced in early December, provides greater certainty and value
The leadership of Warner Bros. Discovery has advised its investors to turn down a revised acquisition proposal from Paramount, insisting the bid falls short when compared with the agreement already reached with Netflix.
Eko Hot Blog reports that Paramount recently tweaked its hostile offer by adding a personal financing guarantee valued at over $40 billion from technology billionaire Larry Ellison, in a move aimed at easing concerns over funding and debt exposure.
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In a statement released on Wednesday, the Warner Bros. Discovery board said it unanimously concluded that the Paramount Skydance proposal does not qualify as a superior deal under the terms of its existing merger agreement with Netflix and does not adequately protect shareholder interests.
The board stressed that Netflix’s offer, announced in early December, provides greater certainty and value. That landmark agreement, estimated at nearly $83 billion, would see Netflix acquire Warner Bros.’ film and television studios alongside its HBO Max streaming platform, marking one of the biggest media consolidations in recent years.
Paramount, however, countered days later with an all-cash bid valuing Warner Bros. Discovery at more than $108 billion, before revising the proposal to address concerns around heavy borrowing required to fund the takeover.
Warner Bros. Discovery chairman, Samuel Piazza, noted that the Paramount bid still carries significant risks, including excessive debt financing and weak safeguards should the transaction fail to close.
Unlike Netflix’s proposal, Paramount’s offer would also involve acquiring Warner Bros. Discovery’s cable networks, such as CNN, TNT, TBS, and Discovery, and integrating them into Paramount’s existing television portfolio, which includes CBS, MTV, and Comedy Central.
The unfolding contest, widely viewed as a defining moment for Hollywood’s future, has already drawn political attention and is expected to face intense regulatory scrutiny, especially after former President Donald Trump indicated he would take an interest in the outcome of the deal.
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