- Paramount Skydance extended its tender offer for Warner Bros. shares to Feb 20
- Paramount urges investors to vote against Warner Bros. sale to Netflix at meeting
- About 168.5 million Warner Bros. shares, roughly 7%, have been tendered so far
Paramount Skydance Corp. again extended its tender offer for Warner Bros. Discovery Inc. shares and said it would ask investors to vote against a proposed sale to Netflix Inc. at a special meeting of Warner Bros. shareholders.
The new offer expires Feb. 20, the parent of CBS, MTV and other entertainment businesses said Thursday in a proxy filing. Paramount has been trying to acquire Warner Bros. since September. The company first launched its tender offer on Dec. 8, three days after Netflix announced a deal to buy Warner Bros.' studios and streaming businesses. The company previously extended the offer for another month on Dec. 22.
Paramount said about 168.5 million shares have been tendered as of Jan. 21. That is roughly 7% of Warner Bros.' shares outstanding. Investors often wait until the last minute to tender, however.
“Once again, Paramount continues to make the same offer our board has repeatedly and unanimously rejected in favor of a superior merger agreement with Netflix,” Warner Bros. said in a statement. “It's also clear our shareholders agree, with more than 93% also rejecting Paramount's inferior scheme.”
Warner Bros. is planning a special meeting to approve the Netflix deal by April, giving Paramount a limited window to convince stockholders that its hostile offer is better. Paramount said it will solicit proxies for investors to oppose the deal at the meeting.
Paramount has been actively campaigning against the Netflix proposal, meeting with shareholders and regulators, arguing that its $30-a-share cash offer is financially superior and a better outcome for consumers. The Warner Bros. board has continued to back the Netflix deal, saying it represents a better overall value for shareholders.
Netflix said Tuesday it reached an amended, all-cash agreement to buy Warner Bros.'s streaming and studio business, in a revision aimed at expediting closure of the deal and simplifying payment to shareholders, which previously included a stock component.
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