Netflix is pushing for Warner Bros. Discovery to reject the offer made by Paramount Skydance.
“After a comprehensive and rigorous review process with its independent financial and legal advisors, the WBD Board reaffirmed its conclusion that the transaction with Netflix is in the best interests of WBD stockholders,” stated Netflix in a press release.
Netflix wishes to acquire Warner Bros., including its film and television studios, HBO Max and HBO, in a cash-and-stock transaction valued at $27.75 per WBD share, a value of $82.7 billion.
“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,” said Ted Sarandos and Greg Peters, co-CEOs of Netflix. “Netflix and Warner Bros. will bring together highly complementary strengths and a shared passion for storytelling. By joining forces, we will offer audiences even more of the series and films they love – at home and in theaters – expand opportunities for creators, and help foster a dynamic, competitive, and thriving entertainment industry.”
Netflix claims it has taken steps to ratify the deal.
“Netflix has submitted its Hart-Scott-Rodino (HSR) filing and is engaging with competition authorities, including the U.S. Department of Justice and European Commission. Netflix remains committed to working closely with WBD, regulators, and all stakeholders to ensure a smooth and successful transaction. As previously disclosed, the transaction is expected to close in 12-18 months from the date that Netflix and WBD originally entered into their merger agreement,” stated the streamer.
Paramount’s hostile takeover bid remains at $30 per share, which values the entire company at about $108.4 billion. That is much higher than Netflix’s $82.7 billion cash-and-stock proposal.
