The board of Warner Bros. Discover (WBD) on Wednesday once again rejected a hostile takeover offer from Paramount Skydance, affirming its sale to Netflix.
The board said it continued to believe the Paramount bid is inferior to a previously announced deal with Netflix to buy WBD’s studio and streaming business for $72 billion.
“We have a signed merger agreement with Netflix, it’s a compelling value, a clear path to closing and protections for our shareholders if something stops the close, whatever that might be,” said Mr Samuel Di Piazza, who chairs the WBD board said, as per CNBC on Wednesday.
Business Post reported last year that WBD entered into an agreement to sell its streaming and studio business to Netflix. However, Paramount has been vying to acquire the entirety of WBD, including its pay TV networks.
In the days following the announcement of that deal, Paramount launched its hostile bid, taking directly to shareholders an offer of $30 per share, all cash for the entirety of Warner Bros. Discovery, including its TV networks.
WBD’s board made an initial recommendation to reject the offer, and Paramount subsequently made another push for the coveted assets. In late December Paramount guaranteed the backing of billionaire Larry Ellison, the father of Paramount Skydance CEO David Ellison, as a clear response to questions raised by WBD’s board.
Paramount first showed interest in acquiring all of Warner Bros. Discovery’s assets in September.
The company made three takeover offers before Warner Bros. Discovery kicked off a formal sale process, inviting other bidders into the fold. It would eventually settle for Netflix.
Netflix issued its own statement welcoming the WBD board’s recommendation and noting it has been engaging with the US Department of Justice and European Commission on antitrust concerns surrounding the merger.
“The WBD Board remains fully supportive of and continues to recommend Netflix’s merger agreement, recognizing it as the superior proposal that will deliver the greatest value to its stockholders, as well as consumers, creators and the broader entertainment industry,” Netflix co-CEOs Mr Ted Sarandos and Mr Greg Peters said in the statement.