Warner Bros. Discovery says it will conduct a thorough assessment of Paramount Skydance’s unsolicited offer to buy all WBD outstanding shares at $30 each, with a decision expected within ten business days.
For now, the WBD board isn’t altering its stance on the Netflix agreement. Last week, WBD and Netflix announced a deal in which Netflix would acquire Warner Bros.’ studio operations, along with HBO and HBO Max, for roughly $72 billion, giving an enterprise value of about $82.7 billion. Paramount’s hostile bid, supported in part by three Arab sovereign wealth funds and Jared Kushner’s Affinity Partners, carries an enterprise value of around $108.4 billion.
According to Warner Bros. Discovery, the Board, guided by fiduciary duties and after consulting its independent financial and legal advisers, will carefully evaluate Paramount Skydance’s offer in light of the existing Netflix deal. The company intends to inform shareholders of the Board’s recommendation regarding Paramount Skydance’s tender offer within ten business days.
If counting from Monday, the ten business days would bring the deadline to Friday, December 19. WBD also advised stockholders not to take any action yet in response to Paramount Skydance’s proposal.
Advisers for Warner Bros. Discovery include Allen & Co., J.P. Morgan, and Evercore, while Wachtell Lipton, Rosen & Katz and Debevoise & Plimpton provide legal counsel.
See also: Paramount launches a hostile bid valued at about $108 billion to derail Netflix’s deal with Warner Bros. Discovery.
