Warner Bros. Discovery’s board unanimously rejected Paramount Skydance’s all-cash bid for the company, valued at roughly $108 billion, while accusing its suitor of “consistently” misleading WBD shareholders about the financing behind its takeover bid, calling it inferior to the company’s planned merger with Netflix.
In a detailed letter released Wednesday, the WBD board said it had concluded that the tender offer launched by Paramount Skydance (PSKY) on Dec. 8 is “not in the best interests” of WBD shareholders and does not qualify as a “Superior Proposal” under the company’s existing merger agreement with Netflix. The board reiterated its recommendation that shareholders back the Netflix transaction and not tender their shares into the PSKY offer.
