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00:03Warner Brothers Discovery recommended shareholders reject Paramount's unsolicited all-cash bid on
00:08Wednesday, according to The Wall Street Journal. Warner called Paramount's $77.9 billion offer
00:15illusory and raised concerns about the credibility and structure of the Ellison family's funding
00:20commitment, saying the use of a revocable trust creates risks. Warner said the Ellison family
00:26is funding the deal through a revocable trust, and that Paramount's documents contain gaps,
00:31loopholes, and limitations that could put shareholders and the company at risk.
00:36Warner said the Netflix merger is fully backed by a public company with a market cap of more
00:41than $400 billion and an investment-grade balance sheet. Warner said the Netflix terms are superior
00:48and that the Paramount offer provides inadequate value and adds risks and costs for the company.
00:53Warner said its board saw no material regulatory difference between the proposals.
00:58A shareholder vote on the deal is expected as late as next summer.
01:02For all things money, visit Benzinga.com.
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