Summary
Warner Bros is advising its shareholders to turn down Paramount's offer to buy the company, saying it's "inferior" compared to a previous agreement with Netflix. Paramount wants to buy all of Warner Bros, including TV channels, but the Warner Bros board supports selling the film and streaming parts to Netflix for $72 billion. Warner Bros criticized Paramount's offer for having too much debt and risking shareholder value.
Key Facts
- Warner Bros is recommending shareholders reject a bid from Paramount to buy the company.
- Paramount wants to purchase all Warner Bros entities, including TV channels.
- Warner Bros supports a deal with Netflix for the film and streaming sections, worth $72 billion.
- Paramount's offer is over $108 billion but involves a large amount of debt.
- Warner Bros board claims Paramount's offer lacks shareholder protections.
- Rejecting the Netflix deal would cost Warner Bros $2.8 billion.
- Warner Bros says Paramount's market value is $14 billion but seeks $94 billion in debt financing.
- The board argues the Netflix agreement has less risk and more certainty.
