Warner Bros Discovery has rejected Paramount Skydance’s $108.4 billion hostile takeover proposal, arguing that the bid lacked adequate financing and exposed shareholders to substantial risk.
In a letter to investors, the WBD board said Paramount repeatedly suggested that its $30-per-share cash offer was fully backed by the Ellison family, led by Oracle founder Larry Ellison. The board stated that no such guarantee was ever provided and that the bid carried “many significant risks”.
WBD also described Paramount’s offer as inferior to its existing merger agreement with Netflix. The streaming giant has offered $27.75 per share for Warner Bros’ film and television studios, its content library and the HBO Max platform. According to the board, this is a binding deal that requires no equity financing and is supported by strong debt commitments.
The rejection marks a major setback for Paramount’s attempt to force a takeover, which had already drawn scrutiny over its financial underpinnings and strategic viability.
Source: AMNA