Warner Bros. Discovery Rejects Paramount Bid, Backs Netflix Merger
Warner Bros. Discovery (WBD) has formally rejected Paramount Skydance’s USD 108 billion acquisition proposal, stating that its USD 82.7 billion merger agreement with Netflix is more beneficial for shareholders. The company said the Netflix deal is expected to be completed next year, subject to regulatory approval. Engadget reported the development.
In an official statement, WBD said Paramount’s proposal failed to meet the criteria of a “superior offer” and lacked full financial backing from the Ellison family. The board alleged that Paramount had incorrectly claimed a full backstop by relying on what it described as an “opaque and revocable trust,” which, according to WBD, cannot replace a firm commitment from a controlling shareholder.
WBD also pointed out that the involvement of sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi could expose the proposal to U.S. national security scrutiny, adding further uncertainty to the deal.
Netflix Co-Chief Executive Officer Ted Sarandos said the decision would serve the best interests of customers, creators, and investors.
DBTech/BMT/OR
