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The company asserted that the suggested agreement was financially supported by the family of its CEO, David Ellison, but according to a letter from the WBD board of directors, "this is not and has never been the case David Ellison."
The letter highlights that the Ellison family is depending on "an undisclosed and unclear revocable trust to fund" the transaction rather than direct assistance.
Warner Bros.' board of directors thinks that the financial backing for the proposed deal comes from the family of its CEO, David Ellison. Discovery indicated that a revocable trust "does not substitute a dependable obligation from a controlling shareholder," and noted that the trust documents submitted by Paramount "have gaps, loopholes, and limitations that jeopardize you, our shareholders, and our company." The letter indicated that the board perceives no distinction in regulatory risks between Paramount's proposal and the Netflix agreement, which has already received approval from the company.
Paramount later released a statement encouraging shareholders to "show WBD their preference for Paramount's better offer by tendering their shares for repurchase." The company's announcement indicated that the suggested agreement features a full cash guarantee and provides better conditions than Netflix's proposal.
source: cnbc.com
The letter highlights that the Ellison family is depending on "an undisclosed and unclear revocable trust to fund" the transaction rather than direct assistance.
Warner Bros.' board of directors thinks that the financial backing for the proposed deal comes from the family of its CEO, David Ellison. Discovery indicated that a revocable trust "does not substitute a dependable obligation from a controlling shareholder," and noted that the trust documents submitted by Paramount "have gaps, loopholes, and limitations that jeopardize you, our shareholders, and our company." The letter indicated that the board perceives no distinction in regulatory risks between Paramount's proposal and the Netflix agreement, which has already received approval from the company.
Paramount later released a statement encouraging shareholders to "show WBD their preference for Paramount's better offer by tendering their shares for repurchase." The company's announcement indicated that the suggested agreement features a full cash guarantee and provides better conditions than Netflix's proposal.
source: cnbc.com
