Warner Bros Discovery (WBD) has again urged its shareholders to reject an 'inadequate' £80bn hostile takeover bid from Paramount Skydance, despite a $40bn personal guarantee from Oracle co-founder Larry Ellison. The board described the offer as insufficient and risky.
Paramount, controlled by the Ellison family, had sought to address WBD's concerns by securing a $40bn guarantee from Larry Ellison. However, WBD's board unanimously determined that the amended offer remained inadequate, citing insufficient value, lack of certainty in completion, and significant risks and costs for shareholders.
WBD has an existing agreement to sell its movie studios, HBO, and HBO Max to Netflix for $82.7bn. Paramount's bid is for the entire company, including CNN and Discovery Channel. WBD warned that accepting Paramount's offer would incur $4.7bn in costs, including a $2.8bn breakup fee to Netflix.
Both deals face regulatory scrutiny. Netflix's co-CEOs reiterated that their proposal is superior. Paramount has not commented on the rejection but previously indicated its offer is not final. WBD's share price has risen nearly 170% over the past year amid the bidding war.
