Company claims that revised proposal does not surpass billion-dollar agreement already signed with Netflix and points out financial risks and uncertainties in the business
A recommended that its shareholders reject Paramount’s revised hostile bid for the company, claiming that the existing agreement with Paramount It’s more solid.
In a letter to shareholders released this Wednesday, 7th, Warner stated that Paramount’s revised proposal is not superior, “or even comparable”, to the US$72 billion agreement signed with Netflix for its film and TV studios and the HBO Max streaming service.
Recently, Paramount changed its offer, now worth US$77.9 billion in cash for the entire company, in the hope of getting Warner to abandon the agreement with the streaming giant.
Warner’s board unanimously decided that Paramount’s new proposal “remains inadequate, especially given the insufficient value it would provide.” The panel also cited uncertainties about Paramount’s ability to complete the deal and the potential risks to shareholders if the operation fails.
*With Estadão Content
