Warner Bros Board Advises Shareholders to Turn Down Paramount Bid
The board issued comparable guidance regarding Paramount's previous bid in December, though Paramount revised its submission on Dec. 22.
Netflix disclosed in December that it had finalized arrangements to purchase Warner Bros.' film and television production operations—encompassing HBO Max and HBO—at an equity price of $72 billion and a comprehensive enterprise value of $82.7 billion.
On Wednesday, the board unanimously reaffirmed its endorsement of the Netflix transaction.
"The Board unanimously determined that Paramount's latest offer remains inferior to our merger agreement with Netflix across multiple key areas," the statement declared.
"Paramount's offer continues to provide insufficient value, including terms such as an extraordinary amount of debt financing that create risks to close and lack of protections for our shareholders if a transaction is not completed," it said.
The board emphasized that the legally binding Netflix agreement delivers superior shareholder returns with enhanced deal certainty, eliminating the substantial hazards and expenses that Paramount's proposal would place on stockholders.
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