WBD rejects Paramount offer again in favor of Netflix deal
CNBC••general
Key Points:
- The Warner Bros. Discovery (WBD) board unanimously recommended shareholders reject Paramount Skydance's hostile takeover bid, deeming it inferior to WBD's $72 billion deal with Netflix for its studio and streaming business.
- WBD's chairman Samuel Di Piazza emphasized the Netflix merger offers clear value, a defined closing path, and shareholder protections, contrasting with concerns over Paramount's backing by billionaire Larry Ellison.
- Despite multiple offers and assurances from Paramount, including commitments from Ellison's family trust, WBD criticized Paramount for failing to address key deficiencies in its proposals.
- Paramount initially showed interest in acquiring WBD in September and made three takeover offers before WBD initiated a formal sale process, but Paramount has not increased its bid
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