Netflix Might Not Get Warner Bros. After Shocking Update

Last Friday, the industry was rocked with the game-changing news of Netflix‘s surprising acquisition of Warner Bros. Discovery. This $82.7 billion merger deal was instantly met with concern and opposition from Hollywood unions and creatives, including the Directors Guild of America (led by current president Christopher Nolan) and Writers Guild of America. Now there’s some hope that Warner Bros. and DC won’t get bought by Netflix.

What’s the shocking update on the Netflix and Warner Bros. merger?

However, a new report claimed that the Netflix and Warner Bros. Discovery merger might have hit another delay, after a major studio suddenly launched a counteroffer to acquire Warner Bros. Discovery. According to THR, Paramount Pictures is currently attempting to snatch the Warner Bros. Discovery deal away from Netflix by offering shareholders a much larger bidding proposal in a hostile takeover attempt.

“The Paramount offer for the entirety of WBD provides shareholders $18 billion more in cash than the Netflix consideration,” Paramount Pictures said in a statement. “WBD’s Board of Directors recommendation of the Netflix transaction over Paramount’s offer is based on an illusory prospective valuation of Global Networks that is unsupported by the business fundamentals and encumbered by high levels of financial leverage assigned to the entity.”

In addition, Paramount executive David Ellison is even urging Warner Bros. Discovery shareholders to carefully consider their “superior all-cash offer,” instead of settling for Netflix’s “inferior proposal” of $82.7 billion.

“WBD shareholders deserve an opportunity to consider our superior all-cash offer for their shares in the entire company,” Ellison said. “Our public offer, which is on the same terms we provided to the Warner Bros. Discovery Board of Directors in private, provides superior value, and a more certain and quicker path to completion. We believe the WBD Board of Directors is pursuing an inferior proposal which exposes shareholders to a mix of cash and stock, an uncertain future trading value of the Global Networks linear cable business, and a challenging regulatory approval process. We are taking our offer directly to shareholders to give them the opportunity to act in their own best interests and maximize the value of their shares.”

(Source: THR)

Source: Comingsoon.net