Paramount Skydance Takes WBD To Court Over Netflix Offer – Seeks Data So Shareholders Can Make An 'Informed Decision'

• Paramount noted that it kicked off the acquisition talks with Warner Bros. Discovery four months ago with a private offer, which was eventually enhanced to $30 per share in an all-cash proposal.
• Paramount’s offer values Warner Bros. Discovery at $108.4 billion, including the company’s debt, as well as cable TV networks such as CNN, the Discovery Channel, and TNT.
• Netflix’s offer values WBD at an enterprise value of $82.7 billion, but excludes the spinoff company.

Paramount Skydance Corp. (PSKY) on Monday sued for information in its bid for a hostile takeover of Warner Bros. Discovery Inc. (WBD).

The David Ellison-led company filed a suit in the Delaware Chancery Court, asking it to direct Warner Bros. Discovery to provide information with respect to Netflix Inc.’s (NFLX) offer.

“We filed suit this morning in Delaware Chancery Court to ask the court to simply direct WBD to provide this information so that WBD shareholders have what they need to be able to make an informed decision as to whether to tender their shares into our offer,” the company said in its letter.

Paramount Skydance shares edged up by 0.6% in Monday’s opening trade, while Warner Bros. Discovery shares declined 2%. Retail sentiment on Stocktwits around PSKY trended in the ‘neutral’ territory, while users felt ‘bearish’ about WBD.

Netflix shares were up 0.3% at the time of writing, with retail sentiment trending in the ‘bullish’ territory on Stocktwits.

Paramount’s Contention

Paramount noted that it kicked off the acquisition talks with Warner Bros. Discovery four months ago with a private offer, which was eventually enhanced to $30 per share in an all-cash proposal.

The company added that when it learned of Netflix’s offer, it went public with its own proposal, which resulted in a tender offer last month.

“Our goal remains to have constructive discussions with WBD's Board to reach an agreement that is in the best interests of WBD shareholders,” the company said.

‘Superior’ Offer

Explaining why it called its offer “superior” to Netflix’s, Paramount said that at $30 per share, its deal is easy to value when compared to the Netflix transaction.

Paramount’s offer values Warner Bros. Discovery at $108.4 billion, including the company’s debt, as well as cable TV networks such as CNN, the Discovery Channel, and TNT. In contrast, Netflix’s offer valued WBD at an enterprise value of $82.7 billion, but excluded the spinoff company.

While announcing its hostile bid in December, Paramount highlighted that it provides WBD shareholders $18 billion more in cash than the consideration offered by Netflix.

PSKY stock is down 9% year-to-date, WBD stock is down 2%, while NFLX stock has declined 4%.

Also See: Why EVTV Stock Doubled Today On This Nvidia GPU Purchase Order

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on