The Board of Directors for Warner Bros. Discovery is not keen on a potential hostile takeover from the Ellison-backed Paramount Skydance.
Warner Bros. Discovery’s board said in a press release on Wednesday that the offer from Netflix “represents the best value-creating path for shareholders,” and that Paramount’s competing deal is “inferior.”
It was announced earlier this month that the company had agreed to a deal worth $82.7 billion for Netflix to acquire Warner Bros. This would split up the company, with the linear TV part of the business being spun off as Discovery Global.
Days later, Paramount Skydance countered with an all-cash offer of $108.4 billion ($30 per share), attempting to make a full acquisition of Warner Bros. Discovery.
In a striking press release full of fiery language, including the allegation that Paramount Skydance has “consistently misled” shareholders about a “full backstop” from the Ellison family, the board urged shareholders not to tender their shares and reject the hostile offer.
“We are confident that our merger with Netflix represents superior, more certain value for our shareholders and we look forward to delivering on the compelling benefits of our combination,” Warner Bros. Discovery Board of Directors chair Samuel A. Di Piazza Jr. said in the release.
The board stressed that the company might have to deal with significant costs due to a deal with Paramount Skydance. Among them, a multi-billion dollar breakup fee would have to be paid to Netflix if their already agreed-upon agreement goes south.
At every turn, wrestling and combat sports have some level of involvement in this story. Monday Night Raw airs on Netflix each week, and a large portion of WWE’s international media rights are also currently tied up with the streamer.
AEW has a multi-year deal with Warner Bros. Discovery, airing weekly TV on TNT and TBS. And TKO-owned UFC is just weeks away from kicking off a lengthy deal with Paramount, which will become the exclusive home for their live content.
