Warner Bros to reject Paramount's revised takeover offer: Bloomberg
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The news: Warner Bros intends to again reject a takeover from Paramount despite the rival media company amending its offer, reports suggest.
The context: Multiple sources told Bloomberg that Warner Bros has yet to make a final decision, but board members consider Paramount’s offer inferior to one made by Netflix.
Days after Warner Bros, the owner of HBO and CNN, accepted the Netflix offer earlier this month, Paramount went public with its own USD30 ($44.8) per share cash bid.
It has amended that offer twice since then as it ramps up its attempts to buy Warner Bros. That included billionaire Paramount owner Larry Ellison reportedly offering to personally guarantee more than USD40 billion in equity financing.
But Warner Bros board members are concerned that Paramount is yet to offer increased financial terms, and is waiting for Ellison’s company to do so.
Other sticking points reportedly include Paramount failing to guarantee covering a breakup fee that Netflix would be entitled to if Warner Bros scrapped its existing agreement.
The sources: Bloomberg, Financial Times
