Warner Bros. Says Over 93% of Its Holders Reject Paramount’s Bid

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Paramount Skydance Corp. again extended its tender offer for Warner Bros. Discovery Inc. shares and said it would ask investors to vote against a proposed sale to Netflix Inc. at a special meeting of Warner Bros. shareholders. The new offer expires Feb. 20, the parent of CBS, MTV and other entertainment businesses said Thursday in a proxy filing. Paramount has been trying to acquire Warner Bros. since September. The company first launched its tender offer on Dec. 8, three days after Netflix announced a deal to buy Warner Bros.’ studios and streaming businesses. The company previously extended the offer for another month on Dec. 22.  Paramount said about 168.5 million shares have been tendered as of Jan. 21. That is roughly 7% of Warner Bros.’ shares outstanding. Investors often wait until the last minute to tender, however. WATCH: Paramount Skydance again extended its tender offer for Warner Bros. Discovery shares and said it would ask investors to vote against a proposed sale to Netflix at a special meeting of Warner Bros. shareholders. Chris Palmeri reports. “Once again, Paramount continues to make the same offer our board has repeatedly and unanimously rejected in favor of a superior merger agreement with Netflix,” Warner Bros. said in a statement. “It’s also clear our shareholders agree, with more than 93% also also rejecting Paramount’s inferior scheme.” Warner Bros. is planning a special meeting to approve the Netflix deal by April, giving Paramount a limited window to convince stockholders that its hostile offer is better. Paramount said it will solicit proxies for investors to oppose the deal at the meeting. Paramount has been actively campaigning against the Netflix proposal, meeting with shareholders and regulators, arguing that its $30-a-share cash offer is financially superior and a better outcome for consumers. The Warner Bros. board has continued to back the Netflix deal, saying it represents a better overall value for shareholders. Netflix said Tuesday it reached an amended, all-cash agreement to buy Warner Bros.’s streaming and studio business, in a revision aimed at expediting closure of the deal and simplifying payment to shareholders, which previously included a stock component. Seema Shah, Vice President of Research and Insights at Sensor Tower, joins Bloomberg Intelligence to discuss the ongoing battle for Warner Bros. -------- Get more on The Bloomberg Intelligence Podcast On Apple: http://bit.ly/3YrBfOi On Spotify: http://bit.ly/3SPPZ8F Anywhere: http://bit.ly/43hOc0r Follow us on X: https://twitter.com/BloombergRadio Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts: https://www.youtube.com/bloombergpodcasts Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake