WBD Opting for Netflix Could Be Revlon Violation: Lawyer
Warner Bros. Discovery opting for Netflix's bid over Paramount Skydance's, which would maximize shareholder value, could be a Revlon violation, Flaster Greenberg transactions lawyer Daniel Markind wrote last week. A 1985 Delaware Supreme Court ruling about the takeover of Revlon said the company's board was obliged to seek maximum shareholder value over subjective values like "culture," Markind said. Currently, Paramount’s initial offer exceeds Netflix’s per-share price and is structured as an entire company offer, while Netflix wants to buy WBD's studio and streaming-service assets only, he noted.
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Markind added that since President Donald Trump has said that a Netflix takeover could be problematic and that whoever takes over WBD should also run CNN, a Paramount deal could represent fewer antitrust and regulatory concerns for the Trump administration.