Bid received: A couple of hours after Paramount unveiled its hostile takeover plan for Warner Bros. Discovery, the target company issued its own press release to “confirm receipt” of the unsolicited offer.
The Warner Bros. Discovery Board of Directors “will carefully review and consider Paramount Skydance’s offer in accordance with the terms of Warner Bros. Discovery’s agreement with Netflix,” the statement said. WBD will reveal the board’s recommendation “within 10 business days.”
In the meanwhile, the WBD board “is not modifying its recommendation with respect to the agreement with Netflix,” and the company’s stockholders “are advised not to take any action at this time with respect to Paramount Skydance’s proposal.”
Paramount this morning announced that it has commenced an all-cash tender offer to acquire all of the outstanding shares of Warner Bros. Discovery for $30 per share, which translates to an enterprise value of $108.4 billion.
The company is bidding for the entire WBD after the latter agreed on Friday to sell its film and TV studios as well as HBO/HBO Max to Netflix for $82.7B in cash and stick ($27.75 a share).