According to today’s reports, the bidding war for Warner Bros. Discovery has reached a significant turning point. Netflix co-chief executive Greg Peters stated that the company is on track to win the backing of Warner Bros Discovery shareholders for its $82.7 billion all cash-offer.
In an interview with the Financial Times, Peters dismissed Paramount’s rival bid, claiming it “does not pass the sniff test” due to its heavy reliance on debt.
Peters said that only a small amount of WBD shares had been submitted in support of Paramount’s hostile $108.4 billion offer for the entire company.
According to Reuters, the Warner Bros board earlier this month turned down an altered application that included a $40.4 billion in equity, which was specifically guaranteed by Oracle’s co-founder- and father of Paramount CEO David Ellison’s father-Larry Ellison.
Paramount Skydance has extended the deadline for its unsolicited takeover bid for Warner Bros. Discovery to February 20. This move came immediately after Netflix revised its $82.7 billion offer to be all-cash in hopes of accelerating the deal’s closure and providing financial certainty to investors.
Keeping recent insights in view, Warner Bros. Discover has already unanimously approved the Netflix deal. Furthermore, with the Delaware court rejecting Paramount various legal challenges, Netflix is now firmly on track to win.
