Paramount Skydance is intensifying its efforts to block Warner Bros Discovery's (WBD) $82.7 billion deal with Netflix by nominating directors to the WBD board in an attempt to garner support against the agreement. The media giant has filed a lawsuit, seeking disclosure of financial information related to the deal, as it aims to protect its own interests and secure a $108.4 billion takeover bid.
In a move that could potentially upset the status quo, Paramount plans to nominate directors for election at WBD's annual meeting in June, with the goal of replacing existing or proposed directors supported by Netflix. This would require convincing enough WBD investors to cast their votes in favor of its nominees and, thereby, derail the deal.
Paramount is also attempting to secure its own bid for WBD, backed by a personal guarantee of $40 billion from Larry Ellison, co-founder of Oracle. The offer includes buying the global networks operation, including CNN, Cartoon Network, and Discovery Channel, which Netflix would not be acquiring under the proposed agreement.
In a letter to investors, David Ellison, Paramount's CEO, stated that the company is committed to seeing its takeover bid through but acknowledged that the decision would ultimately rest with WBD shareholders' vote. The "slate of directors" nominated by Paramount would then engage with the company to assess the merits of its takeover offer.
Paramount argues that its $30-a-share cash offer is a better deal for WBD shareholders than Netflix's proposal, which includes $23.25 per share in cash and stock, as well as equity in the global networks spin-off valued at zero. The media giant has also proposed an amendment to WBD's bylaws to require shareholder approval for the separation of the global networks business.
WBD's board has twice rejected Paramount's hostile takeover bid, calling it "inadequate" and warning that its leverage buyout structure poses risks to the offer. However, the company must now contend with a lawsuit filed by Paramount seeking disclosure of financial information related to the deal.
In a move that could potentially upset the status quo, Paramount plans to nominate directors for election at WBD's annual meeting in June, with the goal of replacing existing or proposed directors supported by Netflix. This would require convincing enough WBD investors to cast their votes in favor of its nominees and, thereby, derail the deal.
Paramount is also attempting to secure its own bid for WBD, backed by a personal guarantee of $40 billion from Larry Ellison, co-founder of Oracle. The offer includes buying the global networks operation, including CNN, Cartoon Network, and Discovery Channel, which Netflix would not be acquiring under the proposed agreement.
In a letter to investors, David Ellison, Paramount's CEO, stated that the company is committed to seeing its takeover bid through but acknowledged that the decision would ultimately rest with WBD shareholders' vote. The "slate of directors" nominated by Paramount would then engage with the company to assess the merits of its takeover offer.
Paramount argues that its $30-a-share cash offer is a better deal for WBD shareholders than Netflix's proposal, which includes $23.25 per share in cash and stock, as well as equity in the global networks spin-off valued at zero. The media giant has also proposed an amendment to WBD's bylaws to require shareholder approval for the separation of the global networks business.
WBD's board has twice rejected Paramount's hostile takeover bid, calling it "inadequate" and warning that its leverage buyout structure poses risks to the offer. However, the company must now contend with a lawsuit filed by Paramount seeking disclosure of financial information related to the deal.
! I think this whole thing is just a big game of chess 
, and whoever makes the right move will come out on top 
. I mean, can you blame Paramount for trying to block that Netflix deal? It's like they're saying, "Hey, we've got a better plan!" 
Plus, if Larry Ellison is backing this bid with a personal guarantee of $40 billion... that's some serious cash 
! And let's be real, who wouldn't want the global networks operation under their control? 
It's all about finding the silver lining here 
. Maybe this lawsuit thing will just shake things up and lead to an even better deal for everyone involved 
.
I think this is getting intense! Paramount really is throwing down the gauntlet here 
. Nominating directors to the WBD board is like a big middle finger, telling Netflix that we're not going to let you just swoop in and take over without a fight 
. And now they're offering Larry Ellison's own cash to sweeten the deal? That's some serious clout 
i mean, netflix has money and stuff, but param was like "hold up, let me try my luck too" 
Paramount's trying everything in their power to stop Netflix from buying WBD and it's clear they really want those global networks for themselves 
The $40 billion guarantee from Larry Ellison is a huge game-changer, too! 
It's gonna be wild to see what happens at the June annual meeting and who gets to make the final decisions 
I'm not convinced.
they're actin like kids in a sandbox fightin over who gets to push the big red button 
like wwd wants to block the netflix deal but param thinks they can just nudge the wbd board and get them to vote in favor of their own bid? its so cringeworthy 
meanwhile larry ellison is throwing around 40 billion dollars as a guarantee... what even is this 
. And now they're trying to secure their own bid with Larry Ellison's $40 billion guarantee? Wow, talk about a big shot 
. I think it's great that WBD is trying to protect its own interests, but at the same time, it's exciting to see what happens next 
.
. The stakes are high, and the drama is real 
. Can't wait to see how this all plays out!
. But at the end of the day, it's not just about money; it's about what kind of media ecosystem we want to support and who gets to decide that 
.
[Red Circle](https://media.giphy.com/media/KyKUf9F2e6Y6nC8qD6/giphy.gif)
. I mean, it's not every day you see a major player trying to disrupt the status quo like this. But at the same time, I feel bad for WBD shareholders who are caught in the middle of all this 
