Warner Bros. Rejects Paramount Takeover Bid Again

Warner Bros. again rejected a takeover bid from Paramount and told shareholders to stick with a rival offer from Netflix.

Warner Bros. Discovery said that its board determined Paramount’s proposal is not in the best interests of the company or its shareholders and again recommended support for the Netflix deal. (Photo: Paramount Group)

Warner’s leadership has repeatedly rebuffed Skydance-owned Paramount’s overtures and, just weeks ago, urged shareholders to back the sale of its streaming and studio business to Netflix for $72 billion, Wyatte Grantham-Philips and Michelle Chapman reported for the Associated Press (AP).

Paramount, meanwhile, has sought to sweeten its $77.9 billion hostile offer for the entire company.

Warner Bros. Discovery said that its board determined Paramount’s proposal is not in the best interests of the company or its shareholders and again recommended support for the Netflix deal.

“Paramount’s offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to closing and lack of protections for our shareholders if a transaction is not completed,” Warner Bros. Discovery Chair Samuel Di Piazza Jr. said in a statement.

By contrast, he added, the company’s agreement with Netflix “will offer superior value at greater levels of certainty.”

Paramount’s hostile bid remains on the table, and Warner shareholders currently have until Jan. 21 to tender their shares.

Late last month, Paramount announced an “irrevocable personal guarantee” from Oracle founder Larry Ellison — the father of Paramount CEO David Ellison — to back $40.4 billion in equity financing for the offer.

Paramount also raised its promised payout to shareholders to $5.8 billion if the deal is blocked by regulators, matching Netflix’s breakup fee.