"When WBD began reshuffling the company around over the summer, it wasn't a pretext or preliminary for acquisition: The conglomerate simply wanted to unburden its streaming and studio businesses from the debt-riddled TV business (in their terms, the "global networks arm"). The Netflix deal accommodates that reshuffling. The streaming giant agreed to buy WBD's movie and streaming stuff, leaving the TV half of the business to be spun out on its own."
"One might see the Netflix offer, at a comparatively lower $27.75 per share, and think that perhaps David Ellison, head of Paramount, was right about the WBD board being dead-set on his competitor, but, as the Wall Street Journal reports, "Warner saw Netflix's deal as the superior one given that Warner shareholders would continue to own shares in both companies following its planned split.""
Warner Bros. Discovery reached a deal to sell its movie studio and streaming businesses to Netflix for $72 billion. Paramount sent a letter to WBD's board criticizing the sale as a "myopic process" and then launched a formal hostile takeover attempt. Paramount offered $30 per share in cash to buy all of WBD. Netflix's agreement differs by buying only the movie and streaming assets, leaving the TV or "global networks" arm to be spun out, and by offering a mix of cash and stock. WBD's internal valuation placed Netflix's offer between $31 and $32 per share to shareholders.
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