Overview
- The board unanimously ruled the revised Paramount Skydance bid not superior to the existing Netflix agreement and urged shareholders to reject it.
- Warner Bros. Discovery estimated roughly $4.7 billion in switching costs, including a $2.8 billion termination fee to Netflix, a $1.5 billion debt-exchange penalty, and about $350 million in additional interest.
- The company questioned Paramount Skydance’s capacity to close, noting a market capitalization near $14 billion versus about $94.65 billion required and plans to add more than $50 billion of new debt.
- Paramount Skydance’s offer was reported near $108 billion, or roughly $30 per share, compared with Netflix’s approximately $83 billion package that includes $23.25 in cash plus target $4.50 in Netflix stock per WBD share.
- Netflix co-CEOs Ted Sarandos and Greg Peters welcomed the reaffirmation, while Paramount Skydance faces a choice to raise its bid or continue courting Warner Bros. Discovery investors.