Warner Bros. Discovery Rejects Paramount's $108 Billion Bid. Here's One Reason Why.

Paramount Skydance's (NASDAQ: PSKY) last-ditch bid to win the bidding war for Warner Bros. Discovery (NASDAQ: WBD) took a step backward on Wednesday after WBD recommended that its shareholders reject Paramount's tender offer, or the hostile takeover it made last week. Instead, the WBD board said the company should move ahead with the agreed sale to Netflix (NASDAQ: NFLX). WBD gave several reasons for that decision, but the crux of the argument appeared to be that the Paramount offer was not as sound as Netflix's. In a press release announcing the decision, WBD said that the Ellison family, which would fund the $108 billion offer, had not provided an equity backstop, meaning a commitment of other funding if the financing falls through. It also called Paramount's offer non-binding, meaning Paramount could back out at any time.WBD pushed back on Paramount's argument that its offer represented less regulatory risk than the Netflix bid, saying it sees "no material difference in regulatory risk" between the two offers. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool