Paramount Skydance has intensified its hostile takeover effort against Warner Bros. Discovery. On Monday, it announced plans to appoint its own slate of directors prior to the upcoming shareholder meeting of Warner Bros.
Legal Action in Delaware
In conjunction with its takeover bid, Paramount has initiated a lawsuit in Delaware Chancery Court. This legal action seeks to compel Warner Bros. to disclose how it values its bid alongside the competing offer from Netflix.
Bidding War Between Major Studios
Warner Bros. Discovery finds itself amid a competitive bidding war involving Paramount and Netflix. The leadership at Warner has consistently rejected approaches from Paramount Skydance. They have urged shareholders to consider Netflix’s offer of $72 billion for its streaming and studio business.
Paramount’s Offer
Paramount is trying to bolster its own proposal, which stands at $77.9 billion for the entire company. Recently, Warner Bros. Discovery announced that its board views Paramount’s offer as not beneficial for the company or its shareholders. Consequently, they reiterated their recommendation for shareholders to support the Netflix deal.
Commitment from Paramount’s Leadership
David Ellison, the chairman and CEO of Paramount Skydance, expressed a strong commitment to his company’s tender offer. In a letter to Warner Bros. shareholders, he stated, “We do not undertake any of these actions lightly.”
Future Meetings and Leadership Decisions
As of now, Warner Bros. has yet to determine a date for its annual or special meeting to discuss the Netflix offer. Paramount has not mentioned any specific candidates for board positions that they plan to propose.
- Paramount’s Offer: $77.9 billion
- Netflix’s Offer: $72 billion
- Warner Bros. Leadership Conclusion: Paramount’s offer not in shareholders’ best interest
