Warner Bros. to ‘carefully’ review Paramount bit, decision in 10 days

Warner Bros. Discovery announced that it will carefully review Paramount Skydance’s unsolicited takeover offer and issue a decision within 10 business days. 

The bid, valued at $30 per share, seeks to acquire all outstanding WBD stock and is backed in part by three Arab sovereign wealth funds and Jared Kushner’s Affinity Partners, giving it an enterprise value of $108.4 billion.

In its Monday, December 8, statement, WBD emphasised that the board “is not modifying its recommendation with respect to the agreement with Netflix.” 

Last Friday, the company and Netflix confirmed a $72 billion deal, under which Netflix would acquire Warner Bros.’s studio operations, HBO, and HBO Max, with an enterprise value of $82.7 billion.

“The Warner Bros. Discovery Board of Directors, 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.

WBD added that stockholders “should not take any action at this time with respect to Paramount Skydance’s proposal.” 

The board’s recommendation is expected by Friday, December 19. Allen & Co., J.P. Morgan, and Evercore serve as financial advisers, while Wachtell Lipton, Rosen & Katz, and Debevoise & Plimpton provide legal counsel.

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