Warner Bros Discovery reviews Paramount’s hostile bid

NEW YORK: Warner Bros Discovery has confirmed that Paramount Skydance has launched an unsolicited tender offer to buy all outstanding shares of the Hollywood group, jolting an already fraught takeover landscape.

The company said its board will review the approach in line with its fiduciary duties and in consultation with independent financial and legal advisers. For now, it is standing firm behind its existing agreement with Netflix and has not altered its recommendation to shareholders.

The board said it would communicate its formal view on the Paramount Skydance offer within 10 business days. Investors have been advised to sit tight and take no action while the review is under way.

Allen & Company, JP Morgan and Evercore are advising Warner Bros Discovery, with Wachtell Lipton Rosen & Katz and Debevoise & Plimpton acting as legal counsel.

Paramount Skydance’s move adds fresh intrigue to the battle for scale in global media, as studios and streamers fight for content, cashflow and control. Warner Bros Discovery said the bid does not affect the proposed transaction with Netflix, details of which will be set out in forthcoming regulatory filings with the US Securities and Exchange Commission.