Paramount Skydance Accused of Misinformation in Warner Bros. Acquisition Bid

Netflix’s co-CEO, Ted Sarandos, has claimed that Paramount Skydance is spreading misinformation to disrupt its acquisition efforts concerning Warner Bros. Discovery.

Recently, Netflix granted Warner Bros. Discovery a seven-day exemption to reconsider a revised proposal from Paramount Skydance.

According to a regulatory filing by Warner Bros., this waiver allows them to address unresolved issues in Paramount’s earlier offer. They now have until February 23 to potentially strike a deal.

Paramount is set to collect a ticking fee of 25 cents per share from Warner Bros., totaling $650 million quarterly. If Warner Bros. chooses to reject Netflix’s agreed proposal, it will incur a $2.8 billion termination fee.

David Ellison, Chairman and CEO of Paramount, stated, “Our all-cash offer of $30 per share reflects our strong commitment to maximizing the value for our WBD shareholders. We are ready to enhance this deal with billions, ensuring shareholders receive value certainty and protection against market fluctuations.”

In an interview with CNBC, Sarandos accused Paramount of “flooding the zone with misinformation,” creating various extreme scenarios. He expressed confidence that the acquisition would move forward as planned following the granted waiver.

“I think it’s likely there won’t be any major adjustments,” he noted, mentioning Warner Bros.’ commitment to maximizing cash for its shareholders.

Sarandos also dismissed Ellison’s assertion that Paramount could take a quicker regulatory route. “I’m not sure why they would suggest having insider information about the Justice Department, but that’s not the case. We’re respected in regulatory matters globally,” Sarandos stated, pointing out that not acquiring Discovery Global wouldn’t disrupt the European broadcasting system.

He emphasized that Netflix’s decision to grant the waiver was intended to show good faith to WBD shareholders. “We’ve given them a chance to receive what they deserve, clearly outlining the value of these transactions,” he added. He believes Netflix’s deal would offer the best value for shareholders, which is why they recommended it and affirmed their support.

“Our aim is to provide these shareholders with seven days to understand their position. After that, on March 20, a vote will take place. We are confident that the Discovery board at Warner Bros. will remain supportive of this,” Sarandos continued, indicating that shareholders would agree that Netflix presents the best value for Warner Bros. Discovery.

In response to ongoing developments, Trump has stated intentions to pursue the matter legally without taking sides.