BREAKING: Warner Bros has officially rejected a $77.9 billion takeover bid from Paramount, reaffirming its commitment to a rival offer from Netflix worth $72 billion. This urgent decision underscores a fierce corporate battle as Warner Bros urges shareholders to stand firm against Paramount’s advances.
In a statement released on Wednesday, Warner Bros Discovery’s leadership called Paramount’s bid “not in the best interests” of the company or its shareholders. The board emphasized the superior value and certainty of the Netflix deal, amid an escalating bid from Paramount aimed at acquiring the entire company.
Warner Bros Discovery chair Samuel Di Piazza Jr. stated, “Paramount’s offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed.” In stark contrast, he highlighted that the agreement with Netflix offers “superior value at greater levels of certainty.”
Despite the rejection, Paramount is not backing down. The company has been actively working to enhance its offering, recently announcing an “irrevocable personal guarantee” from Larry Ellison, the founder of Oracle, to support $40.4 billion in equity financing for the bid. This strategy aims to reassure stakeholders about the viability of their proposal.
Paramount has also increased its proposed payout to shareholders to $5.8 billion if regulatory authorities block the deal, matching Netflix’s breakup fee. This aggressive maneuver reflects the company’s determination to secure a foothold in the competitive streaming market, even as Warner Bros continues to rally support for its Netflix partnership.
Warner Bros shareholders currently have until January 21 to tender their shares, adding urgency to the ongoing negotiations. The stakes are high as both companies vie for dominance in an industry undergoing rapid transformation.
As the situation develops, all eyes will be on the shareholders and regulators, with the potential for significant shifts in the media landscape. Paramount’s hostile bid remains on the table, and the outcome could reshape the future of both companies.
Expect further updates as this story unfolds, with major implications for the entertainment industry and its key players.
