Paramount Pushes Back Against Netflix Deal at Warner Bros Discovery, Files Lawsuit
In a bold move, Paramount Skydance is set to nominate directors to Warner Bros Discovery's (WBD) board in an effort to block the $82.7 billion deal with Netflix. The streaming giant is poised to take control of WBD's prized assets, including the studios behind beloved franchises like Harry Potter and Batman.
In a letter sent to WBD investors on Monday, Paramount said it would nominate directors for election at the company's annual meeting, scheduled for June, in an attempt to derail the deal with Netflix. To win what is known as a proxy fight, Paramount must convince enough WBD investors to cast their votes in favor of its nominees and replace existing or new directors proposed by WBD's board.
Paramount is also attempting to secure its own $108.4 billion takeover bid on WBD, which has been backed by a personal guarantee from Larry Ellison worth $40 billion. The deal has been met with resistance from WBD's board, which has twice told shareholders to reject the offer as "inadequate."
Paramount argues that its cash and stock offer is a better deal for WBD shareholders, valuing the company at around $30 per share compared to Netflix's offer of $23.25 per share plus zero equity in the global networks spin-off.
To further hinder the progress of the Netflix deal, Paramount has filed a lawsuit seeking disclosure of financial information related to the agreement, including how WBD has valued its global networks operation, which includes CNN, Cartoon Network, and Discovery Channel. The company claims that this information is essential for WBD shareholders to make an informed decision.
In a statement, David Ellison, CEO of Paramount, said that the company remains committed to its takeover bid but will engage in constructive discussions with WBD's board to reach an agreement that benefits all parties involved. However, if negotiations fail, Paramount is prepared to take further action to secure its offer.
In a bold move, Paramount Skydance is set to nominate directors to Warner Bros Discovery's (WBD) board in an effort to block the $82.7 billion deal with Netflix. The streaming giant is poised to take control of WBD's prized assets, including the studios behind beloved franchises like Harry Potter and Batman.
In a letter sent to WBD investors on Monday, Paramount said it would nominate directors for election at the company's annual meeting, scheduled for June, in an attempt to derail the deal with Netflix. To win what is known as a proxy fight, Paramount must convince enough WBD investors to cast their votes in favor of its nominees and replace existing or new directors proposed by WBD's board.
Paramount is also attempting to secure its own $108.4 billion takeover bid on WBD, which has been backed by a personal guarantee from Larry Ellison worth $40 billion. The deal has been met with resistance from WBD's board, which has twice told shareholders to reject the offer as "inadequate."
Paramount argues that its cash and stock offer is a better deal for WBD shareholders, valuing the company at around $30 per share compared to Netflix's offer of $23.25 per share plus zero equity in the global networks spin-off.
To further hinder the progress of the Netflix deal, Paramount has filed a lawsuit seeking disclosure of financial information related to the agreement, including how WBD has valued its global networks operation, which includes CNN, Cartoon Network, and Discovery Channel. The company claims that this information is essential for WBD shareholders to make an informed decision.
In a statement, David Ellison, CEO of Paramount, said that the company remains committed to its takeover bid but will engage in constructive discussions with WBD's board to reach an agreement that benefits all parties involved. However, if negotiations fail, Paramount is prepared to take further action to secure its offer.
. I get why they'd want to block the Netflix deal, but nominating directors for WBD's board might be a bit aggressive 
. It feels like they're trying to muscle in on the negotiations, which could lead to some awkward moments 
.
. $108.4 billion is no joke! But WBD's board should take a closer look at their deal with Netflix and consider what's best for shareholders 
. It'll be interesting to see how this all plays out in the coming months 
.
. Only time will tell how this drama unfolds 
!
! Paramount is totally on the right track by trying to protect WBD's shareholders from getting ripped off by Netflix 
! The idea that Netflix is basically stealing WBD's assets and leaving them with nothing but pennies is just wrong 
. I'm Team Paramount all the way 
! They should totally go through with the proxy fight and show Netflix who's boss 
!
, but honestly I think it's gonna be a battle royale between these two giants 
, but at the same time, its offer is looking more attractive by the minute 
. But let's be real, this whole thing could go south faster than a Kardashian marriage 
, so we'll just have to wait and see what happens next 
, this is insane! Netflix trying to get into the game of owning studios like Harry Potter and Batman? It's like they're trying to control the entire movie universe! 
But seriously, can we talk about how Larry Ellison's personal guarantee of $40 billion is like, totally on point 
. This proxy fight and lawsuit thingy is getting real interesting... 
. And I'm not mad about Paramount wanting transparency on how WBD valuates its global networks operation - that's just good business practice 
. If it comes to a proxy fight, I guess we'll have to wait and see how it all plays out 
. Nowadays, it's all about the Benjamins 
.
but at the same time, it's a massive deal and everyone wants a piece of the pie 
so maybe Paramount is just trying to protect themselves? 
And what's up with the proxy fight? It's just so... so... corporate. 
You know, in my day, we didn't need all that drama to get something done. Just good ol' fashioned negotiations and a strong handshake would've taken care of it. 
at warner bros discovery 
paramount thinks their cash & stock offer is better 
seeking disclosure of financial info related to the agreement 
gotta keep an eye on this one 
by these major players and they're trying to back out now? But seriously, have you seen the numbers? $108.4 billion is a lot of cash and Paramount's offer is actually better for WBD shareholders in the long run. I mean, can't say I'm surprised though, WBD's board has been pretty resistant to the deal from the start. And what's up with Larry Ellison's personal guarantee? Like, why does he even need that kind of insurance? 
whoever comes out on top is gonna be a total powerhouse