Warner Bros Discovery's board has rejected Paramount's $108.4 billion hostile takeover bid, citing inadequate financing assurances and significant risks associated with the offer .
On Wednesday December 17, the board released a letter to shareholders in a regulatory filing.
“Paramount had consistently misled Warner Bros shareholders that its $30-per-share cash offer was fully guaranteed or backstopped,” by the Ellison family, led by billionaire and Oracle CEO Larry Ellison.
The letter addresses Paramount's offer, "It does not, and never has," claiming that the offer posed "numerous, significant risks."
The co-CEO Ted Sarandos said in an official statement, "The Warner Bros Discovery Board reinforced that Netflix's merger agreement is superior and that our acquisition is in the best interest of stockholders.”
Warner Bros shares dropped 1.4% to $28.5 in premarket trading, while Netflix rose 1.5% and Paramount declined 1.8
The board further wrote, "The PSKY offer provides an untenable degree of risk and potential downside for WBD shareholders,” adding, the Paramount offer "once again fails to address key concerns that we have consistently communicated, throughout our extensive engagement and review of their six previous proposals."
"We are confident that our merger with Netflix represents superior, more certain value for our shareholders," it explained.
To note, Paramount has submitted a total of six bids to acquire the entire Warner Bros studio, including its television networks; CNN and TNT Sports.
