Warner Bros. Discovery shareholders have been asked to hold off on taking any action on Paramount Skydance’s amended $30-per-share offer pending the board’s review of the proposal.
Paramount Skydance submitted an amended unsolicited tender offer with an irrevocable personal guarantee from Larry Ellison. The revised offer came after Warner Bros. Discovery’s board rejected the original proposal, arguing that it “provided inadequate value and imposed numerous significant risks and costs on WBD and its stockholders.” The board maintained that Paramount Skydance’s bid did not meet the criteria of being superior to the agreed-upon Netflix deal.
The board is not modifying its original recommendation to accept Netflix’s $82.7 billion deal for Warner Bros., post the Discovery Global spin-off, but will review the proposal “consistent with its fiduciary duties and in consultation with its independent financial and legal advisors.”
