In another chapter of the Warner Bros. Discovery saga, today, the WBD Board unanimously recommended rejecting the offer Paramount made last week — when the Ellison family-controlled studio launched a hostile all-cash bid at $30 per share directly to WBD shareholders.
The WBD Board insisted the deal with Netflix was superior and in the Hollywood studio’s best interests.
In response to the WBD Board’s recommendation against Paramount’s offer, Paramount today affirmed its commitment to acquiring the studio, saying the company is highly confident its offer would receive timely regulatory approval because it would enhance competition in the creative industries. Plus, the all-cash offer would avoid exposure to equity market fluctuations that could affect the equity component of the Netflix offer.
Paramount’s offer would be financed by $41 billion of new equity backstopped by the Ellison family and RedBird Capital and $54 billion of debt commitments from Bank of America, Citi and Apollo.
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