The board of Warner Bros. Discovery officially rejected David Ellison‘s $30 per share hostile bid for the company, telling shareholders that it remains “inferior” to the Netflix deal, and carries “numerous significant risks and costs on WBD.”
With the rejection official, Paramount will need to persuade WBD shareholders to tender their shares at that price, or to submit a higher bid than its $108 billion offer that would shift the outcome of the dealmaking.
“Following a careful evaluation of Paramount’s recently launched tender offer, the Board concluded that the offer’s value is inadequate, with significant risks and costs imposed on our shareholders,” said Samuel A. Di Piazza, Jr., chair of the Warner Bros. Discovery board of directors, in a statement. “This offer once again fails to address key concerns that we have consistently communicated to Paramount throughout our extensive engagement and review of their six previous proposals. We are confident that our merger with Netflix represents superior, more certain value for our shareholders and we look forward to delivering on the compelling benefits of our combination.”
Warner Bros. Says Ellisons ‘Misled’ Shareholders in Takeover Bid
The claim was made as part of Warner Bros. Discovery’s dismissal of Paramount’s hostile takeover offer.
The CEO stands to gain $567 million if a deal is sealed to sell the WB empire while longtime lieutenant Gunnar Wiedenfels will see $144 million in cash and stock considerations if a transaction closes.