Warner Bros. scheduled to vote on merger
It was previously reported that Warner Bros. has set a date to vote on the Netflix merger on March 20. However, Netflix has also granted Warners a seven-day waiver to talk with David Ellison and Paramount Skydance on their counter-offers to the studio in an attempt to resolve their issues and review a final offer from Ellison.
David Zaslav, CEO of Warner Bros. Discovery, has stated, “Throughout the entire process, our sole focus has been on maximizing value and certainty for WBD shareholders. Every step of the way, we have provided PSKY (Paramount Skydance) with clear direction on the deficiencies in their offers and opportunities to address them. We are engaging with PSKY now to determine whether they can deliver an actionable, binding proposal that provides superior value and certainty for WBD shareholders through their best and final offer.”
Warner Bros. will be reviewing Paramount’s sweetened bid
According to The Hollywood Reporter, Warner Bros. has stated that they will be officially reviewing the newly revised bid from Paramount. It’s not yet known what this sweetened bid entails, but recently, they proposed adding a new $0.25 a share so-called “ticking fee” payable to WBD shareholders for each quarter its transaction has not closed beyond December 31, 2026. However, they haven’t reportedly increased their proposed $30 a share cash bid.
WBD’s board said in a statement,
Following engagement with PSKY during the seven-day limited waiver period, we received a revised PSKY proposal to acquire WBD, which we are reviewing in consultation with our financial and legal advisors. We will update our shareholders following the Board’s review. The Netflix merger agreement remains in effect, and the Board continues to recommend in favor of the Netflix transaction. WBD shareholders are advised not to take any action at this time with respect to the amended PSKY tender offer.”
Stars weigh in
It was recently reported that James Cameron wrote to Sen. Mike Lee, who chairs the Senate subcommittee on antitrust, competition policy, and consumer rights, on the matter. “I believe strongly that the proposed sale of Warner Bros Discovery to Netflix will be disastrous for the theatrical motion picture business that I have dedicated my life’s work to,” Cameron wrote. “Of course, my films all play in the downstream video markets as well, but my first love is the cinema. I have been among the pioneers in enhancing the theatrical experience, through the creation of digital 3D production systems, advanced visual effects technologies, and pioneering high frame rate display. Theatrical exhibition is a critical part of my creative vision. I believe in the big screen.“
Mark Ruffalo had responded to Cameron’s letter by posting to Threads, “So… the next question to Mr Cameron should be this, ’Are you also against the monopolization that a Paramount acquisition would create? Or is it just that of Netflix?’”
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