Board ready to advise shareholders
Warner Bros Discovery plans to recommend shareholders reject Paramount Skydance’s $108.4bn takeover bid. Reports say the board could issue guidance as early as Wednesday. Executives cite major strategic and financial risks. They argue the offer lacks clarity and long-term stability.
Paramount claims its bid exceeds a $72bn agreement Warner Bros struck with Netflix. That deal covers film and streaming assets. Paramount presents its offer as superior. Warner Bros executives strongly dispute that claim.
Financing concerns at the forefront
Warner Bros plans to highlight funding risks as a key reason for rejection, according to the Financial Times. Executives question how Paramount would finance the transaction. They also worry about high debt after completion. These concerns dominate the board’s deliberations.
Support for the takeover has weakened. Affinity Partners has reportedly withdrawn backing. The firm cited the presence of two strong competitors. Jared Kushner founded Affinity Partners. Its exit casts doubt on the bid’s credibility.
Sale process draws multiple suitors
Warner Bros launched a sale process in October after receiving multiple expressions of interest. Paramount Skydance emerged early among potential buyers. Management explored ways to restructure the company. The process drew strong attention across the media industry.
On 5 December, Warner Bros Discovery agreed to sell film and streaming assets to Netflix. The deal focused on scale and distribution reach. One week later, Paramount Skydance returned with a broader bid. That offer targeted the full company, including television networks.
Political connections and regulatory scrutiny
The Ellison family backs Paramount and maintains close ties to the president. Those connections add political sensitivity to the takeover. Regulators would still examine any deal carefully. Authorities in the United States and Europe would assess competition risks.
Analysts expect a challenging approval process. Regulators would examine market power and consumer choice. Clearance would remain uncertain for months.
Industry voices alarm
A successful takeover would strengthen a buyer’s streaming position. The new owner would gain a vast film and television library. Assets include Harry Potter, Friends, the MonsterVerse, and HBO Max. Such scale could reshape competition.
Some in the film industry oppose merging Warner Bros with a rival. The Writers Guild of America urged regulators to block the deal. The union warned of lower wages and job losses. It also said audiences would face reduced content choice.
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