Shares of Netflix have fallen 8% in the past five days since announcing its $82.7 billion deal for Warner Bros. Discovery.
In addition to Netflix facing public criticism over the deal and concerns about potential regulatory approval, Paramount is looking to thwart the deal with a $108.4 billion hostile takeover bid being taken directly to WBD shareholders.
Paramount CEO David Ellison, his chief legal officer Makan Delrahim and Paramount chief strategy officer Andy Gordon held meetings with WBD shareholders in New York City on Tuesday in an effort to convince them to accept the company’s tender offer.
GAMCO Investors chairman Mario Gabelli told TheWrap it’s “highly likely” that he will tender his clients’ WBD shares to Paramount, but emphasized the battle is still in the “early innings.”
Paramount’s tender offer will be open for 20 business days, or until Jan. 8, and Warner Bros Discovery’s board will need to respond with a recommendation within 10 business days, or by Dec. 22. Paramount also has the option to extend the tender offer.
Under the terms, shareholders have withdrawal rights that expire at 5 p.m. ET on Jan. 8. Those rights would be extended if Paramount extends the tender offer.
Netflix stock, which is trading at $95.16 apiece as of Wednesday morning, is currently down 1.6%. Its shares are down 15% in the past month and 20% in the past six months, but are up 7.3% year to date, 4% in the past year and 89% in the past five years.
Meanwhile, Warner Bros. Discovery shares are up 20.6% in the past five days. WBD stock, which is trading at $29.20 per share as of Wednesday morning, is currently up 3.31%. Warner shares are shares are up 27% in the past month and 191% in the past six months, 173%year to date and 168% in the past year.
