Warner Bros. Discovery’s board could announce a resolution as early as Wednesday on Paramount Skydance’s $108.4 billion takeover bid, with the board probably to advise shareholders to vote against the offer, according to sources acquainted with the matter.
The resolution to recommit to Netflix’s buyout offer would mark the newest twist in the race for belongings that embody Warner Bros.’ storied movie and TV studio, and its intensive movie and tv library, whose portfolio consists of classics ranging from “Casablanca” and “Citizen Kane” to up to date favorites like “Harry Potter” and “Friends,” HBO and the HBO Max streaming service.
A Warner Bros. Discovery spokesman declined to remark.
Warner Bros. Discovery, headed by CEO David Zaslav, is probably to advise shareholders to vote against Paramount Skydance’s offer, according to sources. AFP via Getty Images
The winner will gain a large benefit in the streaming wars by locking up a deep content material library that has long been an acquisition goal.
Netflix earlier this month emerged victorious with a $27 cash-and-stock bid for Warner Bros.’ non-cable belongings.
Paramount CEO David Ellison then went straight to Warner Bros. shareholders with a $30-a-share, all-cash bid for the entire company.
Paramount CEO David Ellison went straight to Warner Bros. shareholders with a $30-a-share, all-cash bid for the entire company. AFP via Getty Images
In regulatory filings, Paramount has said its bid is superior to Netflix’s offer and would take pleasure in a clearer path to regulatory approval. Its offer is financed by $41 billion in new equity, which is backed by the Ellison household and RedBird Capital, and $54 billion of debt commitments from Bank of America, Citi and Apollo.