The sale of Warner Bros. to Netflix is going to get messier before it gets settled. On Monday, it was announced that Paramount had submitted what is being classified as a “hostile” proposal to acquire Warner Bros. Discovery in its entirety.
Their offer would be for $30 per share, compared to Netflix’s $27.75 per share for just the Warner Bros. side of the company.
“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” Paramount CEO David Ellison said. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion.”
In a message to investors on Monday afternoon, Warner Bros. Discovery confirmed that it had received the public proposal from Paramount. The company called the offer “unsolicited”, but will “carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix”.
Warner Bros. Discovery made it clear, however, that the Board of Directors will not be “modifying its recommendation” of the Netflix acquisition with respect to the prior agreement. The company plans to inform stockholders of the Board’s recommendation regarding Paramount’s offer with 10 business days.
If counting today, that would mean an update should come by no later than Friday, December 19. With offers being considered and a fight underway, the future of Warner Bros. Games—both its studios and projects—continues to hang in the balance.
What do you think ultimately happens with the Warner Bros. sale, and will it go to Netflix or Paramount? Leave your thoughts down in the comments or in the official Insider Gaming Discord server.
Full Warner Bros. Discovery Statement On The Offer
Warner Bros. Discovery, Inc. (“Warner Bros. Discovery” or “WBD”) (NASDAQ: WBD) today confirmed Paramount Skydance Corporation (“Paramount Skydance”) (NASDAQ: PSKY) has commenced an unsolicited tender offer to acquire all of the outstanding shares of Warner Bros. Discovery common stock.
The Warner Bros. Discovery Board of Directors (the “Board”), consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix, Inc. (“Netflix”).
The Board is not modifying its recommendation with respect to the agreement with Netflix. Warner Bros. Discovery intends to advise its stockholders of the Board’s recommendation regarding Paramount Skydance’s tender offer within 10 business days.
Warner Bros. Discovery stockholders are advised not to take any action at this time with respect to Paramount Skydance’s proposal.
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Mike has been covering the gaming industry since 2012, and has reported on some of the largest events in the industry while also working as an investigative reporter. Outside of…
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