(Jan 12): Paramount Skydance Corp said it plans to nominate directors to Warner Bros Discovery Inc’s board to vote against the approval of a merger with Netflix Inc and has filed a suit to force Warner Bros to disclose information to help shareholders make an informed decision.
In a letter sent to Warner Bros investors on Monday, Paramount said it’s sticking to its offer of US$30 a share and encouraged shareholders to tender their shares.
“We are committed to seeing our tender offer through,” the letter said. “We understand, however, that unless the WBD board of directors decides to exercise its right to engage with us under the Netflix merger agreement this will likely come down to your vote at a shareholder meeting.” It’s unclear whether that vote will be at Warner Bros upcoming annual meeting or a separate special meeting.
Paramount accused Warner Bros of failing to disclose how it values the cable-TV assets that the company plans to spin off before selling the studios and streaming business to Netflix, and also took issue with other details regarding the transaction. Paramount, run by David Ellison, considers its offer for all of Warner Bros superior to Netflix’s US$27.75 a share offer for the studios and streaming business.
Paramount filed a lawsuit Monday to ask the court to force Warner Bros to provide information so that shareholders have what they need to be able to make an informed decision as to whether to tender their shares into its offer.
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