Okay Paramount Skydance, you’re starting to reek of serious desperation. Take the hint! Warner Bros. Discovery does NOT want to play ball with you.
This morning, the newly formed Paramount Skydance corp filed a lawsuit against Warner Bros. discovery because WBD won’t entertain any of the 8 offers they’ve made to purchase the entertainment giant. Instead, it sure seems like WBD is already in bed with Netflix and their $82.7 BILLION offer.
Paramount Skydance filed in Delaware Chancery Court, citing a lack of “basic information to enable WBD shareholders to make informed decision” on WBD’s part. They’re seeking to “ask the court to simply direct WBD to provide disclosure about how it valued the Global Networks stub equity, how it valued the overall Netflix transaction, how the purchase price reduction for debt works in the Netflix transaction, or even what the basis is for its ‘risk adjustment’ of our $30 per share all-cash offer.” There’s also talk of a proxy battle.
“Despite six weeks and just as many press releases from Paramount Skydance, it has yet to raise the price or address the numerous and obvious deficiencies of its offer,” WBD said in a statement following today’s lawsuit filing. “Instead, Paramount Skydance is seeking to distract with a meritless lawsuit and attacks on a board that has delivered an unprecedented amount of shareholder value. In spite of its multiple opportunities, Paramount Skydance continues to propose a transaction that our board unanimously concluded is not superior to the merger agreement with Netflix.”
Obviously, we’ll let you know what happens with this and other important industry news.
