The latest update in the ongoing saga is here, and it seems like Warner Bros. are planning to reject Paramount Skydance’s bid and stay aligned with the original agreement with Netflix. A report yesterday by Bloomberg has confirmed that the board of directors at Warner Bros. are sticking with Netflix despite the aggressive Paramount bid.
The report from Bloomberg has suggested that Warner Bros. Discovery will be asking their investors to reject the bid from Paramount Skydance in favour of the original offer from Netflix, due to it offering greater value and terms. The initial bid from Netflix offered a deal valued at $82.7 billion, equating to $27.75 a share. Read our full report on that here. This was followed up last week by a counter offer from Paramount Skydance offering the equivalent of $30 dollars per share. You can read our report on Paramount Skydance’s counter bid here.
Per the Bloomberg report “After deliberating and reviewing Paramount’s bid, Warner Bros.’ board will urge shareholders to reject the tender offer, said the people, who asked not to be identified discussing confidential information. The board still views the company’s existing agreement with streaming leader Netflix Inc. as offering greater value, certainty and terms than what Paramount has proposed.“
Warner Bros. released a statement last week saying that they were not adjusting their recommendations regarding the Netflix deal, and would be advising their shareholders to not take any action regarding the Paramount Skydance offer. The full statement is available here. Warner Bros. will be relaying the board’s official recommendations within 10 days.
If the shareholders do follow the board’s lead then Netflix will acquire Warner Bros. Discovery next year, following the company’s split into two separate entities.
We will of course keep you updated on the latest developments in this ongoing saga as we receive them.
How do you feel about the Netflix acquistion of Warner Bros.? Let us know in the XboxEra Forums or make some noise in the lively XboxEra Community Discord Server. If you’re looking to be a bigger part of an amazing community, then either choice is a good one!
