Board ready to guide shareholders
Warner Bros Discovery plans to advise shareholders to turn down Paramount Skydance’s $108.4bn takeover bid. Reports say the board could deliver its guidance as soon as Wednesday. Executives see serious strategic and financial risks. They argue the offer lacks clarity and long-term value.
Paramount claims its bid exceeds a $72bn deal Warner Bros agreed with Netflix. That agreement covers film and streaming assets. Paramount presents its offer as superior. Warner Bros executives strongly dispute that assessment.
Funding concerns take centre stage
Warner Bros plans to cite financing risks as a key reason for rejection, according to the Financial Times. Executives question how Paramount would fund the transaction. They also worry about high debt after completion. These concerns dominate board discussions.
Support for the takeover has weakened. Affinity Partners has reportedly withdrawn from backing the offer. The firm cited the involvement 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 as a potential buyer. Management explored ways to restructure the company. The process drew close industry attention.
On 5 December, Warner Bros Discovery agreed to sell its film and streaming operations 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 links 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 review 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 raises alarms
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.
