Warner Bros Discovery (NASDAQ: WBD) will reportedly reject Paramount Skydance’s (NASDAQ: PSKY) hostile takeover bid and recommend shareholders vote down the tender offer, with the board saying the company’s existing agreement with Netflix provides greater value, certainty, and better terms, according to Bloomberg reporting.
The company’s response to the Paramount tender could be filed as early as Wednesday, formalizing the board’s stance after its review of the proposal’s funding structure and other conditions.
Directors concluded the Paramount approach underdelivers on financing robustness and overall deal protections relative to the Netflix agreement, and will therefore urge investors to decline the tender.
A separate development adds pressure to Paramount’s funding stack: Jared Kushner’s investment firm, Affinity Partners, allegedly withdrew from the Warner Bros takeover battle.
Paramount Skydance is offering $30.00 per Warner share in cash, a $108.4 billion hostile bid for the entire company including cable, backed by equity plus $54 billion in committed debt from Bank of America, Citi, and Apollo. This comes after Netflix has a signed agreement to buy Warner Studios and HBO assets for $82.7 billion enterprise value and $72.0 billion equity value, paying $27.75 per share via $23.25 cash plus $4.50 in Netflix stock.
Information for this story was found via Bloomberg and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
