Netflix co-CEO Ted Sarandos claimed that Paramount Skydance has been “flooding the zone with misinformation” to derail the ongoing takeover of Warner Bros. Discovery.
On Tuesday, Netflix granted Warner Bros. Discovery a seven-day waiver to reconsider amended offers from Paramount Skydance.
“Warner Bros. said in a regulatory filing Tuesday that the waiver will allow it to discuss unresolved ‘deficiencies’ in Paramount’s previous offers,” noted the Associated Press. “Warner Bros. now has until Feb. 23 to negotiate a possible transaction with Paramount Skydance.”
Paramount enticed Warner Bros with a 25-cent per share ticking fee, totaling a $650 million cash value per quarter, adding that it would also pay the $2.8 billion termination fee if the studio rejected Netflix’s agreed-upon offer.
“The additional benefits of our superior $30 per share, all-cash offer clearly underscore our strong and unwavering commitment to delivering the full value WBD shareholders deserve for their investment,” Paramount chair and CEO, David Ellison said in a statement at the time. “We are making meaningful enhancements — backing this offer with billions of dollars, providing shareholders with certainty in value, a clear regulatory path, and protection against market volatility.”
Speaking with CNBC on Tuesday, Ted Sarandos said that Paramount has been “flooding the zone with misinformation, creating a bunch of what-ifs and scenarios that are very wild, and even in any end of that range, let alone the top end of that range.”
Sarandos expressed confidence that the deal will proceed as planned following the seven-day waiver.
“The most likely outcome is, there’s no adjustment at all. Warners had been very clear that their intent is to maximize cash for the shareholders,” he said.
Sarandos also rejected David Ellison’s assertion’s that Paramount would somehow “have a faster regulatory path.”
“I don’t know why the Ellisons would insinuate they have some inside track in the Department of Justice, but I can assure you they don’t, and that, and in terms of our regulatory in Europe and around the world, we are known entities and trusted entities with all the players in Europe,” Sarandos said. “And, in fact, our deal, by not acquiring Discovery Global, we don’t disrupt the European broadcast system at all.”
Sarandos said Netflix granted the seven-day waiver only to show the WBD shareholders they have been negotiating in good faith with their best interests at heart.
“We have given the opportunity to get those shareholders exactly what they deserve, which is complete clarity and certainty about what the value of these deals are,” Sarandos said. “And what we’re certain is, is that the Netflix deal to acquire these assets is the best deal, generates the best value for their shareholders. And they think so too. That’s why they recommended the deal and why they reiterated recommending that deal post this. So give them seven days to put their money where their mouth is.”
“Our goal here is to make sure that folks take the seven days to figure out exactly where they stand. And then, on March 20, there is a vote and they will make the decision. And we’re confident that the Warner Bros. Discovery board, which continues to endorse this [Netflix] deal, and the shareholders will come to the same conclusion — that this is the best value for Warner Bros. Discovery,” he continued.
President Trump has already said he will let the deal play out through the legal channels, adding he will take no side.
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