Warner Bros. Discovery (WBD) is looking to be sold and they accepted Netflix's $82.7 billion offer a few weeks ago. But then Paramount made a counter-bid of $108.4 billion to buy all of Warner Bros. Discovery (WBD) with a higher share purchase offer.
Although Paramount's offer was much more lucrative, WBD has asked shareholders to choose Netflix's offer. In a statement released yesterday, Netflix welcomed this recommendation. The reason given by WBD is that there are concerns about how Paramount will generate funds and it may be difficult to obtain regulatory approval from authorities/
Paramount was the first company to announce their interest in buying WBD before Netflix and Comcast also announced the same intention. In the announcement made yesterday, Paramount said they contacted WBD's board of directors six times but their offer was rejected, allegedly more interested in selling the company to Netflix.
This offer made by Paramount is directly to the company's shareholders with a premium of 139% to the company's current share price which is currently at $12.54. WBD will also be acquired in its entirety by Paramount.
Netflix is only interested in acquiring Warner Bros Television, Warner Bros Motion Picture Group, DC Studios, HBO and HBO Max. The Global Networks business is being spun off. It consists of the entertainment, sports and news businesses CNN, TNT Sports, Discovery networks, streaming platform Discovery+ and Bleacher Report.