How Paramount's Hardball Letter To WBD Backfired
Deadline••business
Key Points:
- Warner Bros. Discovery (WBD) defended its selection of Netflix's $82.7 billion bid over Paramount's hostile $108 billion takeover offer, citing issues with Paramount's tactics and financing transparency.
- Paramount's legal team sent a contentious letter accusing WBD management of conflicts of interest, which WBD characterized as a pressure tactic and noted it was poorly timed during critical auction negotiations.
- WBD highlighted concerns about Paramount's financing, backed by an Ellison Family Revocable Trust, which WBD described as opaque and risky, contrasting with Netflix's more straightforward offer and legal documentation.
- The board urged shareholders to reject Paramount's hostile bid, emphasizing Netflix's bid as superior in terms of value, regulatory prospects, and transaction certainty
