Warner Bros Discovery on Wednesday, 17 December, rejected a hostile takeover bid from Paramount, launched last week, which was aimed at derailing plans by streaming giant Netflix to acquire the Hollywood studio and owner of CNN, according to an AFP report.
Warner Bros said it favoured the Netflix merger because its terms were better, adding that Paramount’s offer “once again fails to address key concerns that we have consistently communicated…throughout our extensive engagement and review of their six previous proposals,” according to a company statement.
“We are confident that our merger with Netflix represents superior, more certain value for our shareholders,” the statement read.
The move comes after Paramount Skydance on 8 December launched a hostile bid worth $108.4 billion to acquire Warner Bros Discovery. Just days earlier, Netflix had made a $72 billion offer to buy the film studio and its streaming business.
Netflix’s deal with WBD
Netflix announced on 5 December that it had sealed an agreement with Warner Bros Discovery to buy the film and television studio for nearly $83 billion, the entertainment industry’s largest consolidation deal this decade.
Even though the industry expected Netflix to react to the hostile offer by increasing its own, it did not seem to be taking that path.
Netflix co-CEO Ted Sarandos said earlier, “We have a deal done, and we are incredibly happy with the deal. We think it’s great for our shareholders. It’s great for consumers. We think it’s a great way to create and protect jobs in the entertainment industry.” His remarks hinted towards confidence in the deal.
According to a report by AP, Warner Bros asked its shareholders earlier to reject the takeover bid from Paramount, stating that a rival bid from Netflix would be better for customers and creators.
Paramount proposed to offer $30 per Warner share, compared with Netflix’s $27.75. However, unlike Paramount’s bid, the offer from Netflix does not include the acquisition of Warner Bros’ cable operations.
