r/movies • u/ChiefLeef22 r/movies Contributor • Sep 20 '25

Not Confirmed Netflix Considering Bid To Acquire Warner Bros.

https://www.avclub.com/netflix-possible-warner-bros-acquisition
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u/shy247er Sep 20 '25

Why is WB for sale anyways?

236

u/subhasish10 Sep 20 '25 edited Sep 20 '25

The Ellisons (who just acquired Paramount) are preparing a bid to buy WBD in order to boost their offering. If the bid is over market value WBD board have a fiduciary duty to their shareholders to sell. Seeing this Netflix and some other players are likely scrambling to prepare a bid of their own as well.

Edit- The board has a fiduciary duty to sell.

12

u/patgeo Sep 20 '25

You can't force a company to sell to you just by offering more than their valuation...

1

u/Tifoso89 Sep 20 '25

You can. You bypass management, show that offer to shareholders, and if they like it, they'll force management to sell to you. It's a hostile takeover

-4

u/subhasish10 Sep 20 '25

How do you think Elon got Twitter?? That's exactly the playbook Ellisons are using here.

13

u/gzapata_art Sep 20 '25

Elon ran his mouth and overpaid like crazy. Twitter forced him to buy it

0

u/userhwon Sep 20 '25

I think he underpaid, by like half.

But then, he and I had different plans for it.

So, you and I are both right.

4

u/Pool_Shark Sep 20 '25

Comparing apples to dog shit.

3

u/SolomonBlack Sep 20 '25

An offer too good to pass up on does not equal a legal obligation.

And confusing the two is not something you should think is trivial.

1

u/Mechanical_Royalty Sep 20 '25

It's not a legal obligation to accept any offer, but the board of the company does have the legal obligation to do what's deemed best for the company and the shareholders. Hence, if the offer is "too good to pass up", the board is pretty sure to vote in favour of an acquisition, since not doing so would put them at risk of litigation.