Warner Preparing to Tell Shareholders to Reject Paramount Offer
Company to recommend existing Netflix deal as soon as Wednesday
Warner Bros. Discovery WBD -2.51%decrease; red down pointing triangle is preparing to tell its shareholders to reject Paramount’s PSKY -0.75%decrease; red down pointing triangle latest offer as soon as Wednesday, people familiar with the matter say, and plans to recommend they support its existing deal with Netflix NFLX 0.62%increase; green up pointing triangle instead.
That would leave Paramount and its chief executive, David Ellison, to decide whether to sweeten its offer.
Warner’s shares have been trading close to $30, suggesting investors expect Paramount to up its offer. Netflix had agreed to pay $27.75 per share in cash-and-stock for Warner’s studios and HBO Max streaming business, while Paramount had offered $30 cash per share for the entire company.
Paramount’s tender offer is set to expire on Jan. 8, so the company could wait until then to decide to disclose an improved bid.