A Warner Bros Discovery (WBD) should recommend to shareholders that reject Paramount Skydance’s hostile takeover offerconsidering that the Netflix proposal – with which WBD arrived arrived on December 5th in agreement for the sale of the studios and business streaming of the group, which owns HBO Max – has more value, advance o “Financial Times”.
The rejection by Warner Bros. of the offerand 108.4 billion dollars (around 93 billion euros) and 30 dollars (about 25.75 euros at current exchange rates) per share could be formalized on Wednesday. Netflix offers 83 billion dollars (around 71 billion) and 27.75 dollars (23.82 euros) per share, but leaves out the group’s television channels, such as CNN.
WBD management considers that the proposal is inferior in value, financing and conditions. According to what sources close to the process told the “Financial Times”, one of the doubts is the fact that the offer is supported by the family fund of Larry Ellison, estimated to have 250 billion dollars in shares in the company Oracle, and which is revocable. Paramount is led by his son, David Ellison, considered close to Donald Trump.
Both to WBD and Paramount declined to comment officially. Paramount’s proposal came after Netflix sent an email to subscribers informing them of the acquisition of Warner Bros, taking it for granted.
One of Paramount’s supporters has already given up on the deal: Affinity Partners, led by Jared Kushner, son-in-law of the US President, is withdrawing as there is a conflict between “two strong competitors”.