Warner Bros Discovery has urged its shareholders to reject an updated takeover bid from rival Paramount, saying the offer is inferior to a proposed deal with Netflix. The board said the Paramount Skydance bid does not serve the best interests of the company or its investors.
Paramount amended its hostile bid in mid December to include a personal financing guarantee of more than 40 billion dollars from technology billionaire Larry Ellison. His son, David Ellison, is the chief executive of Paramount Skydance, which controls the Paramount studio and television groups including CBS.
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In a statement, Warner Bros Discovery said its board had unanimously concluded that the Paramount Skydance tender offer does not qualify as a superior proposal under the terms of its merger agreement with Netflix. Board chairman Samuel Piazza said the offer relied on an extraordinary level of debt financing and lacked sufficient protections if the deal failed to close.
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