Warner Bros. Discovery has said that over 93% of its shareholders rejected Paramount Skydance’s offer to buy the entertainment company in favor of Netflix’s modified all-cash bid.
“Once again, Paramount continues to make the same offer our Board has repeatedly and unanimously rejected in favor of a superior merger agreement with Netflix. It’s also clear our shareholders agree, with more than 93% also rejecting Paramount’s inferior scheme,” Warner Bros. said on Thursday, fully backing its pending deal with Netflix.
“We are confident in our ability to achieve regulatory approval for the Netflix merger and look forward to delivering the tremendous and certain value our agreement will provide to Warner Bros. Discovery shareholders,” it added.
The Warner Bros. Board of Directors has rejected Paramount’s bid at least eight times.
The statement came after Paramount extended the deadline for Warner Bros. shareholders to tender their shares into its hostile bid. Only 7% of shareholders have tendered their shares by the initial Jan. 21 deadline, which has been pushed back to Feb. 20.
Paramount CEO David Ellison hopes to get more Warner Bros. shareholders on board, but his efforts may be futile, as the vast majority remain firmly behind the deal with Netflix. Paramount has repeatedly touted its “superior” offer, but the Warner Bros. board continues to disagree.
On Tuesday, Netflix announced an amended all-cash bid to counter Paramount’s claim that its all-cash deal is better for shareholders than the streaming service’s previous cash-and-stock bid. Netflix’s offer is valued at $27.75 per share compared to Paramount’s $30 per share.
Warner Bros. shareholders are expected to vote on the revised transaction by April. Paramount is actively pushing for shareholders to reject the proposed Netflix-Warner Bros. merger.
There’s also the question of federal regulators’ antitrust concerns that haven’t fully developed.
The Department of Justice’s Antitrust Division has not publicly commented on the deal yet, although President Donald Trump said he would weigh in on it during the regulatory approval process. Trump appears to oppose the Netflix deal after he shared a critical op-ed in a Truth Social post this month.
NETFLIX ANNOUNCES MODIFIED ALL-CASH BID FOR WARNER BROS. DISCOVERY AFTER PARAMOUNT THREATS
In the meantime, Netflix is set to face scrutiny at a congressional hearing next month. Netflix co-CEO Ted Sarandos and Warner Bros. Chief Strategy Officer Bruce Campbell are expected to testify before the Senate Judiciary Committee’s antitrust subcommittee, according to Bloomberg.
Sen. Mike Lee (R-UT), the subcommittee chairman, expressed his concerns before Netflix and Warner Bros. announced their deal last month. The hearing date has not been finalized yet.
