Warner Bros. Discovery, responding to Paramount Skydance‘s unsolicited takeover offer to acquire all of WBD’s outstanding stock for $30/share, said it will review the proposal and issue its decision within 10 business days.
For now, the WBD board “is not modifying its recommendation with respect to the agreement with Netflix,” the company said in a statement Monday. On Friday, WBD and Netflix announced a deal under which Netflix would buy Warner Bros.’s studio operations, HBO and HBO Max for $72 billion (with an enterprise value of $82.7 billion). Paramount’s hostile takeover bid, backed in part of three Arab sovereign wealth funds and Jared Kushner’s Affinity Partners, has an enterprise value at $108.4 billion.
“The Warner Bros. Discovery Board of Directors (the ‘Board’), consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix, Inc.,” the company said. “Warner Bros. Discovery intends to advise its stockholders of the Board’s recommendation regarding Paramount Skydance’s tender offer within 10 business days.”
Ten business days from Monday would be Friday, Dec. 19. Warner Bros. Discovery stockholders are advised “not to take any action at this time with respect to Paramount Skydance’s proposal,” WBD said.
Allen & Co., J.P. Morgan and Evercore are serving as financial advisers to Warner Bros. Discovery and Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton are serving as legal counsel.
From Variety US
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