Warner Bros. Discovery CEO David Zaslav gave no indication of which way the company is leaning as it sizes up a sweetened buyout offer from Paramount against its planned merger with Netflix – but he defended the process that got the company to where it is now.
“We made clear we were evaluating all paths to unlock value. We have taken decisive actions, first through our corporate reorganization, then announcing the planned separation of Warner Brothers and Discovery Global, and ultimately a comprehensive strategic review,” he said on a call after quarterly earnings.
“Our board continues to lead a rigorous, highly competitive and thorough sales process. We engaged with four bidders, which led to eight price increases, and have thus far achieved a 63% increase in value versus the first offer received in September, delivering significant value to WBD shareholders.”
A third bidder was Comcast, didn’t make the cut. The fourth has not been identified.
WBD shareswere at about $24 when Discovery and Warner merged in early 2022. They languished in the single digits for years, before surging six months ago after David Ellison began lobbing offers soon after he completed the Paramount-Skydance merger.
Zaslav opened up the process to other bidders and signed a deal with Netflix on Dec. 5. WBD has a fiduciary duty to consider all offers and the latest version from Ellison (number 10?) finally got its attention.
The two sides are discussing now. If WBD finds the Par offer superior, Netflix will have four business days to match. Par’s offer is for the entire company, including cable. Netflix is buying the studio and streaming businesses..
“Our focus,” Zaslav said today, “has and always will be maximizing value and certainty, while mitigating downside risks. And the board will evaluate any proposal against that standard with the objective of delivering the best deal for our shareholders.”
He also wants it understood that, despite major headwinds WBD has faced, the assets being sold are fully in the midst of a “creative resurgence.”
“We have been laser focused on transforming the business for the future, investing big in our creative culture and original storytelling at HBO. Warner Brothers TV, Warner Brothers, Motion Pictures, New Line and DC, all of which created meaningful shareholder value,” he said, going through top IP and strategic initiavies.
More to come
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