The board of Warner Bros. Discovery has "unanimously" turned down an amended proposal from Paramount Skydance

The board of directors at Warner Bros. Discovery has once more turned down the revised offer from Paramount Skydance. In their statement, the board emphasized that the proposals from Paramount Skydance do not align with Warner Bros. Discovery and its shareholder interests, failing to meet the standards defined as a "superior proposal" in their merger terms with Netflix.

A month ago, Netflix announced an $82.7 billion acquisition of Warner Bros, covering its games unit. Following this, Paramount Skydance initiated a hostile takeover attempt for the whole of Warner Bros. Discovery, which the board immediately dismissed. The rejection in question pertains to a revision of that initial bid.

Samuel A. Di Piazza, Jr., who chairs the board at Warner Bros. Discovery, stated, "The latest offer presented by Paramount remains subpar in comparison to our merger agreement with Netflix in multiple critical aspects."

He pointed out that Paramount's proposal still lacks substantial value, citing issues like excessive debt financing that introduce closing risks, and lacks safeguards for shareholders if the deal does not proceed. In contrast, the binding arrangement with Netflix promises greater value and certainty without the significant risks and expenses associated with Paramount's proposal.

The board has communicated further details to shareholders, emphasizing the inadequate value of the offer and the increased likelihood of the transaction not concluding when compared to the Netflix agreement.

To delve deeper into the implications of this deal, check out our article, What does the Netflix deal mean for Warner Bros's games division?