Netflix deal still on track after Warner Bros. Discovery rejects Paramount offer
By San Matildo Warner Bros. Discovery has rejected a revised takeover proposal from Paramount Skydance, warning shareholders the offer relies on an aggressive, debt-heavy structure that the company compared to a “leveraged buyout.” In a let
By San Matildo
Warner Bros. Discovery has rejected a revised takeover proposal from Paramount Skydance, warning shareholders the offer relies on an aggressive, debt-heavy structure that the company compared to a “leveraged buyout.”
In a letter to shareholders accompanying a 67-page amended merger filing, WBD said Paramount’s financing plan could leave the combined company with about $87 billion in debt and urged investors to continue backing WBD’s pending transaction with Netflix — a deal valued at about $82.7 billion in total enterprise value — which remains subject to approvals and regulatory review.
WBD, however, stressed the Netflix deal has not yet closed, and said the Netflix agreement offers greater certainty of completion and a lower-risk financial structure than the revised Paramount proposal.
Despite Paramount’s higher headline valuation, Warner Bros. Discovery said the Netflix agreement offers greater certainty of completion and a lower-risk financial structure.
The board urged shareholders to continue supporting the Netflix transaction while disregarding Paramount’s debt-heavy proposal as it prioritizes balance-sheet stability amid ongoing consolidation in the global media industry.
Key points
- By San Matildo Warner Bros.
- Discovery has rejected a revised takeover proposal from Paramount Skydance, warning shareholders the offer relies on an aggressive, debt-heavy structure that the company compared to a “leveraged buyout.” In a let.