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More than a week ago, Paramount made a formal offer to Warner Bros. Discovery, proposing to acquire the entertainment giant at $30 per share in cash. This offer was detailed in a lengthy and comprehensive 14-day filing. However, Warner Bros. Discovery promptly rejected the bid, making it clear that their position remains unchanged.
The core objection focuses on Paramount's approach to financing the acquisition. Warner Bros. Discovery's board emphasizes that Paramount's representation of having a full backstop from the Ellison family—an assertion that was central to their bid—is misleading. According to Warner Bros., there is no binding commitment from the Ellison family, despite claims suggesting otherwise.