The board of directors of Warner Bros. will urge shareholders to endorse the agreement with Netflix. The deadline for Paramount’s tender offer expires in early January.
American film company Warner Bros. Discovery will appeal to shareholders to reject Paramount’s acquisition proposal in favor of Netflix, reports The Wall Street Journal, citing sources.
The company’s management will recommend accepting the offer from Netflix. Paramount’s share repurchase offer expires on January 8th.
Sources indicated that the board of directors of Warner Bros. Discovery intends to state that the arrangement with the streaming service is more advantageous, even though Paramount is offering \$30 per share in cash compared to \$27.75 per share from Netflix. Paramount proposes buying the entire firm, whereas Netflix is acquiring the Warner Bros. studio, HBO Max, and the HBO channel.
Netflix is bidding for Warner Bros. What the streaming service will gain if the deal goes through.
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Currently, Warner Bros. Discovery shares are trading around \$30 per unit, suggesting market anticipation of a possible price increase from Paramount, writes the WSJ.
Paramount put forward its proposal on December 8th, days after Netflix announced preparations for a deal with Warner Bros. According to the Financial Times, the company was discussing the possibility of increasing the buyout amount, as shareholders felt that the \$30 per share price was not its “best and final” offer.
The potential deal to acquire Warner Bros. has sparked mixed reactions. In Hollywood, warnings were issued about risks to the industry, and regulators were asked to block the arrangement, while US President Donald Trump stated that Netflix already controls a substantial market share, which would significantly expand after the takeover.
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