Warner Bros. Rejects Paramount's Hostile Bid for Second Time, Urges Shareholders to Stick with Netflix Offer
In a move that has sent shockwaves through the media and entertainment industries, Warner Bros. Discovery has rejected a hostile takeover bid from Paramount Pictures for the second time in as many months.
According to a statement released by the company, its board of directors has determined that Paramount's offer is not in the best interests of the company or its shareholders. Instead, they are urging investors to support a rival offer from Netflix, which would see Warner Bros. sold for $72 billion.
The decision comes after Paramount sweetened its bid to $77.9 billion, with an added personal guarantee from Oracle founder Larry Ellison. However, Warner Bros. Discovery remains unconvinced, citing concerns over the amount of debt financing and potential operating restrictions that could "hamper WBD's ability to perform" throughout a transaction.
In contrast, the Netflix deal is seen as providing superior value at greater levels of certainty. The agreement includes a proposed spin-off of Warner's news and cable operations into their own company, which has sparked interest among investors.
The battle for control of Warner Bros. has become increasingly complicated, with both companies wanting different things. Paramount wants to acquire the entire company, including networks like CNN and Discovery, while Netflix is only interested in acquiring the studio and streaming business.
A merger between either company could take over a year to close and will likely attract intense antitrust scrutiny from regulators worldwide. Politics may also come into play, with President Donald Trump expressing interest in potentially intervening on the deal.
Warner shareholders currently have until January 21st to tender their shares in response to Paramount's offer. The outcome of this battle for control of Warner Bros. remains uncertain, but one thing is clear: the fate of the media and entertainment giant will be decided by its shareholders.
In a move that has sent shockwaves through the media and entertainment industries, Warner Bros. Discovery has rejected a hostile takeover bid from Paramount Pictures for the second time in as many months.
According to a statement released by the company, its board of directors has determined that Paramount's offer is not in the best interests of the company or its shareholders. Instead, they are urging investors to support a rival offer from Netflix, which would see Warner Bros. sold for $72 billion.
The decision comes after Paramount sweetened its bid to $77.9 billion, with an added personal guarantee from Oracle founder Larry Ellison. However, Warner Bros. Discovery remains unconvinced, citing concerns over the amount of debt financing and potential operating restrictions that could "hamper WBD's ability to perform" throughout a transaction.
In contrast, the Netflix deal is seen as providing superior value at greater levels of certainty. The agreement includes a proposed spin-off of Warner's news and cable operations into their own company, which has sparked interest among investors.
The battle for control of Warner Bros. has become increasingly complicated, with both companies wanting different things. Paramount wants to acquire the entire company, including networks like CNN and Discovery, while Netflix is only interested in acquiring the studio and streaming business.
A merger between either company could take over a year to close and will likely attract intense antitrust scrutiny from regulators worldwide. Politics may also come into play, with President Donald Trump expressing interest in potentially intervening on the deal.
Warner shareholders currently have until January 21st to tender their shares in response to Paramount's offer. The outcome of this battle for control of Warner Bros. remains uncertain, but one thing is clear: the fate of the media and entertainment giant will be decided by its shareholders.
. Like, can't they just get along? Warner Bros. is basically being held hostage by Paramount's over-the-top offer 
. And don't even get me started on the Oracle founder trying to sweeten the deal with a personal guarantee - sounds like something out of a bad movie 
. I mean, who needs that kind of drama in their life? At least Netflix is offering a more straightforward and value-driven solution 
. The whole thing just feels so complicated and messy... when will it end? 
and still can't convince anyone to sell 
. The Netflix offer makes way more sense, tbh - I mean, who doesn't want a guaranteed deal for $72 billion 
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. I'm all for competition, but this one feels like a battle of egos 
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. Maybe they can see through the PR and just make a smart business move 
? Only time will tell, I guess 
. Like, what's the point of trying to take over another company? It's all just gonna end up in court and someone's gonna have to foot the bill. And now they're talking about politics getting involved? That's just a recipe for disaster 
. I mean, can't we just focus on making some good content instead of fighting over ownership? And what's with the $72 billion offer from Netflix? Is that really worth it? I think Warner Bros. is making a smart move by sticking with their own deal... but at the end of the day, who knows what's best for them 
. This whole thing just smells like a bad investment to me 
. I'm curious about how this whole thing will play out tho, it's gonna be interesting to see what happens next 
wbd's got a great offer from netflix and yet paramount is trying to strong-arm them into selling? and now we've got larry ellison chipping in, like that's gonna change anything... 
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. I guess what really gets me is that both Paramount and Netflix are playing hardball – one wants the whole company and the other wants just the studio 
that warner bros didnt fall into paramours hands! thats a huge weight off their shoulders lol i mean $77.9 billion is a lot to handle, and we dont want our fave media companies getting stuck with all those debt payments 
the netflix deal seems way more appealing to me - it's like they're offering them a better partner, not just trying to acquire everything 
plus that spin-off of news and cable ops sounds like a game changer for wbd! 
. Meanwhile, the "rival" offer from Netflix sounds like a better deal to me 
So, Paramount's got some serious cash to burn, what with Larry Ellison throwing in that personal guarantee and all, but WBD's board just isn't having it... again! 
It'll be interesting to see how all these different forces play out. Fingers crossed WBD shareholders make an informed decision and get the best outcome for everyone involved! 
they're like "nope we don't wanna get bought out" but at the same time they're like "hey netflix we want to sell" lol what's up with that ?? 
. If Paramount takes over, they're essentially taking on a ton of debt and potentially limiting the company's ability to make decisions in the future. That doesn't seem like a good deal for shareholders to me 
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. I mean, get that kind of cash up front and then have the flexibility to spin off your news and cable operations into their own company? It's like getting the best of both worlds 
. With President Trump expressing interest in intervening, it's anyone's guess what might happen next. Will regulators step in and try to block the deal? Who knows?
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