Incomplete bid: Warner Bros. urged shareholders to reject Paramount's bid

The Warner Bros. board on Dec. 17 urged shareholders to reject a $108.4 billion offer from Paramount Skydance to buy the studio, saying it did not contain sufficient financing guarantees, Reuters writes.

In a letter to shareholders that was in the agency's possession, the board said Paramount "consistently misled" Warner Bros. shareholders by claiming that its $30-per-share offer to buy the company was fully guaranteed, or "backed," by the Ellison family, led by billionaire Oracle CEO Larry Ellison.

"This is not and never has been the case," board officials pointed out, commenting on the assurances on Paramount's proposal. The bid, the letter points out, carries "numerous and substantial risks."

The Warner Bros. board also said it considers Paramount's offer "worse" than an agreement to take over part of Hollywood's Netflix business. The streaming giant's offer of $27.75 per share for Warner Bros. film and television studios, its library and HBO Max service is a "binding agreement," requires no equity financing and is backed by secure debt, Warner Bros. said.

Paramount and Netflix did not respond to Reuters' requests for comment.

Warner Bros. shares were down 1.6 percent in the Dec. 17 premarket, Paramount shares fell 1.2 percent and Netflix securities, in contrast, rose 1.8 percent.

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