Discussions over potential improved offer set to be wrapped up by 23 February
David Ellison’s Paramount is to start discussions with Warner Bros Discovery over the future of the fabled US studio, but questioned the seven-day deadline for discussions.
WBD’s board yesterday said a shareholder vote on the future of the company would be held on 20 March, reiterating its support for Netflix’s $83bn deal but also providing a week-long window to receive Paramount’s best and final offer.
Paramount has suggested that it would be prepared to increase its existing $30-per-share offer for the entirety of WBD, and confirmed it would start discussions with the David Zaslav-led company.
Paramount said it noted the seven-day “waiver” for negotiations but also WBD’s decision to “avoid making the customary determination” that a superior proposal could emerge, which would have given Ellison and co. “an unfettered right to negotiate without a time deadline”.
WBD has, by contrast, said it is unsure what will emerge from discussions and said the seven-day window would provide “clarity” for its shareholders by allowing Paramount to make its best and final offer.
Responding to WBD, Paramount added: “Although the [WBD] board’s actions are unusual, Paramount is nonetheless prepared to engage in good faith and constructive discussions.
“At the same time, we will continue to advance our tender offer, maintain our solicitation in opposition to the inferior Netflix merger, and proceed with our intention to nominate a slate of directors at the upcoming WBD annual meeting.”
Paramount also again urged WBD shareholders to support its hostile bid, with discussions between the two companies set to close on 23 February.
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