Paramount files proxy materials in support of WBD bid
Paramount files proxy materials in support of WBD bid
The filings are intended to solicit WBD shareholders to favor Paramount’s bid to purchase the company.
Paramount has made its next move in its ongoing efforts to acquire Warner Bros. Discovery. The company released a statement on Thursday, indicating that it had filed preliminary proxy materials with the Securities and Exchange Commission (SEC), a key step in lobbying WBD shareholders to support its $108 billion bid for all assets under the Warner Bros. canopy.
Key Details:
- Necessary paperwork: Paramount’s latest SEC filing allows it to lobby WBD shareholders to vote against the Netflix bid.
- Glaring admission: The statement also argues that Netflix amending its offer proves its initial bid was inferior.
- Proxy mayhem: Paramount previously signaled a willingness to elect its own board of directors to WBD.
Paramount’s filing of preliminary proxy materials with the SEC means it can now legally solicit Warner Bros. Discovery’s shareholders to reject Netflix’s amended offer by vote at a special meeting. The company continues to maintain that its $30-per-share offer to purchase WBD’s linear channels, TV and movie studios, and streaming services is superior to Netflix’s $27.75-per-share bid to buy just the streaming and studio components.
In addition, Paramount has extended its deadline for WBD investors to tender their shares to Feb. 20. The previous deadline was set for Jan. 21, but Paramount either did not get the response it wanted from WBD shareholders or it believes that more time will prove the strength of its offer versus Netflix’s.
Thursday’s release also addresses Netflix’s decision to convert its bid for WBD to an all-cash offer. In its missive, Paramount argues that WBD’s acceptance of the amended bid is an admission that Netflix’s original offer was always inferior to Paramount’s.
The pursuit of WBD by Paramount is advancing across a broad front. The company has sued for more details about the agreement between Warner and Netflix, and has also pledged it will try to nominate its own board of directors to WBD to kill the Netflix deal. Paramount would need to make additional SEC filings to nominate its own board, however. Thursday’s announcement specifically dealt with filings related to asking WBD shareholders to reject Netflix.
There’s much more to come in the WBD merger drama. Even if Netflix clears Paramount’s various challenges, it will face a daunting regulatory process. And Paramount is showing no signs of giving up in its efforts to acquire WBD for itself.
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