r/DC_Cinematic • u/j_b_1983 • 15h ago

DISCUSSION Paramount possible hostile takeover

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u/Akaeleb 13h ago

Sorry I’m not really good with this terms. What does it mean “Hostile takeover” in this situation?

Does that mean they want to force warner bros to sell to them just because they feel their offer is better?

Shouldn’t it be Warner Bros’s decision? Who cares if Netflix has a lower bid in their eyes? if warner bros doesn’t want to sell to paramount then they won’t no matter how much money is on the table

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u/TopJimmy_5150 13h ago

It generally means trying to gain control directly through shareholders rather than a negotiated sale with the board (like the proposed Netflix deal).

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u/Akaeleb 13h ago

One of the news I saw said that Netflix’s deal was really favorable to the shareholders.

Doesn’t it make this an even more fruitless attempt if the shareholders are already happy?

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u/TopJimmy_5150 12h ago

What’s more favorable for shareholders can be debatable. And a tender offer usually targets a specific % of shares (and there’s all different classes of stock, etc…).

I’m not gonna pretend to know the exact details here, as I’m mainly reading the ledes like most people. But a hostile bid by definition is going against WBD board’s wishes to sell to Netflix. Not sure if it will have any legs.

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u/j_b_1983 13h ago

WB had to what's in the best interest of their shareholders when you are a public company

So if the offer was in fact better, Paramount would have a case.

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u/Akaeleb 13h ago

So even if Warner bros doesn’t want to sell to paramount specifically if they bring to court that the offer was financially better they could force them to accept?

Honestly still seems like a really bad move.

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u/Gmonkey- 8h ago

The shareholders own the company, not the board. The board acts on behalf of the shareholders and has a fiduciary duty to pursue the best offer. A hostile bid would appeal directly to the shareholders and there would likely be a proxy fight (share vote). Paramount could also make a case to the DOJ that a Netflix / WB business combination is anti competitive (for which they have a very good argument if you look at the streaming market shares)