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- Warner Bros to stick with Netflix after rejecting Paramount’s amended takeover offer (the-independent.com)
Warner Bros. Discovery Rejects Paramount Bid Again, Urges Shareholders to Back Netflix
Hollywood heavyweight Warner Bros. Discovery has once again slammed the door on a takeover attempt from Paramount, instead doubling down on its recommendation for shareholders to support a competing offer from streaming giant Netflix. This marks the latest development in a high-stakes corporate drama that could reshape the entertainment landscape.
On Wednesday, Warner Bros. Discovery’s leadership reiterated its stance, advising shareholders that Paramount’s enhanced hostile bid for the entire company does not serve their best interests. The company’s board concluded that Paramount’s proposal, valued at $77.9 billion, fails to meet the standard of a “superior offer” and continues to recommend the $72 billion Netflix agreement.
This isn’t the first time Warner Bros. Discovery has rebuffed Skydance-owned Paramount. Weeks prior, the company urged shareholders to back Netflix’s proposed acquisition, which focuses solely on Warner’s studio and streaming operations, including its legacy TV and film production arms and platforms like HBO Max.
The two competing bids present vastly different futures for Warner Bros. Discovery.
Netflix’s offer would see it acquire the film and TV studios, HBO Max, and HBO, adding iconic franchises like Harry Potter and the entire DC Studios output to its already robust library of original content such as “Stranger Things” and “Squid Game.” Under this scenario, Warner’s news and cable operations, including prominent networks like CNN and Discovery, would be spun off into a separate entity.
Conversely, Paramount’s $108.4 billion counteroffer, made public after Netflix’s bid, aims to acquire the entire Warner Bros. Discovery company, encompassing all divisions beyond just the studio and streaming operations.
Paramount, controlled by the billionaire Ellison family, previously made a cash bid in December, which Warner Bros. Discovery urged shareholders to reject, branding it “inadequate” due to financing concerns.
Both potential mergers are anticipated to face significant antitrust scrutiny. Experts believe that either deal would likely trigger a review by the US Justice Department and could also face challenges from international regulators, given the immense consolidation they represent within the entertainment industry.
Should the Netflix deal go through, it would mark a monumental shift, transforming the service that once bridged the gap between the big and small screen into a Hollywood conglomerate poised to rival established giants like Disney. The ultimate impact on the future of film and television remains a topic of considerable debate among industry observers.
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- Warner Bros to stick with Netflix after rejecting Paramount’s amended takeover offer (the-independent.com)