Netflix stated that the hostile takeover bid for Warner Bros. Discovery (WBD) by Paramount Skydance was "totally expected," but expressed full confidence in closing the previously agreed-upon deal with the entertainment giant.
Ted Sarandos, Co-CEO of Netflix, stated at a conference in New York organized by financial group UBS that "a deal is done" and Netflix is "incredibly happy" with it. "It's excellent for shareholders, for consumers, and for protecting jobs in the entertainment industry," said the executive, adding that Netflix is "superconfident" about closing the deal.
Sarandos highlighted that the Netflix deal has a "formal agreement" that was "approved by the boards of both companies," and that "the transaction is moving forward as planned".
He also emphasized that the combination of Netflix and WBD ensures "a more seamless integration of content and production capabilities, benefiting subscribers, creators, and the industry at large".
Meanwhile, Paramount presented a counteroffer on Monday of $30 per share in cash, surpassing Netflix's $27.75 per share offer, and valuing the company at around $1.08 trillion, including debt.
Paramount has offered to purchase all of WBD, including the Warner Bros. film studio, the HBO Max streaming service, and a portfolio of cable channels, including CNN.
According to these reports, the backing of these funds ensures that Paramount can "sustain a firm and rapid, all-cash offer," increasing the pressure on Netflix.
Cable channels are not part of the agreement with Netflix.
WBD shares rose 4.4% on Wall Street today, Paramount's shares rose 9%, and Netflix's shares fell 3.4%.
Paramount stated today that it approached shareholders with this hostile bid because the WBD board is "pursuing an inferior proposal" that would lead to "a complicated regulatory approval process".
