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WBD Prefers Netflix Over Paramount's Offer
7 Jan
Summary
- Warner Bros. Discovery rejected Paramount's acquisition bid for the eighth time.
- The company board favors Netflix's offer over Paramount's due to stability concerns.
- Theater owners warn of negative impacts on film diversity and jobs from mergers.
Warner Bros. Discovery (WBD) has officially rejected Paramount's acquisition proposal for the eighth time. The WBD board considers Paramount's offer less favorable than Netflix's bid, primarily due to concerns about financial stability. This ongoing negotiation, which began last fall, is set to continue until at least late spring or early summer, when shareholders will cast their votes on the competing offers.
Concerns are also mounting from the theater industry. Cinema United, representing North American theater owners, has appealed to Congress, arguing that a merger of WBD with either Netflix or Paramount would have severe negative consequences. They fear reduced film output, less diversity in movie choices, increased studio leverage over theaters, and widespread job losses.
While Paramount's offer reportedly stands at $30 per share for the entire company, Netflix's bid is for the studio and streaming assets at $27.75 per share, with cable channels being spun off. WBD leadership emphasizes that Netflix, a larger and more stable company, presents a more guaranteed transaction, especially given ongoing stress in the media sector.
