Warner Bros. Discovery Rejects Paramount's Bid, Prefers Netflix's $83 Billion Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: NASDAQ.COM
- Bid Rejection: Warner Bros. Discovery is set to reject Paramount's unsolicited tender offer, as the revised terms, including Larry Ellison's personal guarantee and increased regulatory termination fee, fail to enhance the per-share value, leading to skepticism from the board.
- Competitive Analysis: Despite Paramount's higher headline figure, Warner Bros. favors Netflix's nearly $83 billion deal, citing greater financing transparency and fewer regulatory hurdles, with a $2.8 billion breakup fee if they withdraw from the Netflix agreement.
- Shareholder Concerns: Major shareholders, including Harris Oakmark, have expressed doubts about Paramount's revised offer, deeming it insufficient compared to Netflix's proposal, indicating a lack of confidence in Paramount's bid credibility.
- Industry Dynamics: In Hollywood's largest consolidation battle, Warner Bros.' board continues to recommend shareholders support the Netflix merger agreement, suggesting that unless Paramount significantly improves its terms, Warner Bros. is unlikely to shift its stance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
