Warner Bros Rejects Revised Paramount Bid, Sticks With Netflix
An anonymous reader quotes a report from Reuters: Warner Bros Discovery's board unanimously turned down Paramount Skydance's latest attempt to acquire the studio, saying its revised $108.4 billion hostile bid amounted to a risky leveraged buyout that investors should reject. In a letter to shareholders on Wednesday, Warner Bros' board said Paramount's offer hinges on "an extraordinary amount of debt financing" that heightens the risk of closing. It reaffirmed its commitment to streaming giant Netflix's $82.7 billion deal for the film and television studio and other assets.
Their assessment comes even after Paramount, which has a market value of around $14 billion, proposed to use $40 billion in equity personally guaranteed by Oracle billionaire co-founder Larry Ellison -- father of Paramount CEO David Ellison -- and $54 billion in debt to finance the deal. The decision keeps Warner Bros on track for its deal with Netflix, even after Paramount amended its bid on December 22 to address the earlier concerns about the lack of a personal guarantee from Larry Ellison. Netflix co-CEOs Ted Sarandos and Greg Peters welcomed Warner Bros' decision on Wednesday, saying it recognizes the streaming giant's deal "as the superior proposal that will deliver the greatest value to its stockholders, as well as consumers, creators and the broader entertainment industry."
at Slashdot.