Board prepares rejection guidance
Warner Bros Discovery plans to urge shareholders to reject Paramount Skydance’s $108.4bn takeover bid. Reports say the board could issue guidance as early as Wednesday. Directors see significant risks in the proposal. They question value certainty and execution.
Paramount says its bid exceeds a $72bn agreement Warner Bros reached with Netflix. That deal covers film and streaming assets. Paramount calls its proposal superior. Warner Bros leaders dispute that claim.
Financing doubts take centre stage
Warner Bros plans to cite financing concerns as a core reason for rejection, according to the Financial Times. Executives question how Paramount would fund the deal. They also fear high leverage after completion. These worries dominate board discussions.
Support behind the bid has weakened. Affinity Partners has reportedly pulled out of backing the offer. The firm cited the involvement of two strong competitors. Jared Kushner founded Affinity Partners. The withdrawal undermines confidence in the proposal.
Sale process and rival bids
Warner Bros launched a sale process in October after receiving multiple approaches. Interested parties included Paramount Skydance from an early stage. Management explored options to reshape the business. The process drew intense industry interest.
On 5 December, Warner Bros Discovery agreed to sell film and streaming assets to Netflix. The deal focused on scale and global reach. One week later, Paramount Skydance returned with a broader bid. That offer targeted the entire company, including television networks.
Political ties and regulatory hurdles
The Ellison family backs Paramount and maintains close ties to the president. Those links add political sensitivity to the takeover attempt. Regulators would still scrutinise any deal. Authorities in the United States and Europe would assess competition risks.
Analysts expect a tough approval process. Officials would examine market power and consumer choice. Clearance would remain uncertain.
Industry fears over jobs and choice
A successful takeover would strengthen a buyer’s position in streaming. The owner would gain a vast film and television library. Assets include Harry Potter, Friends, the MonsterVerse, and HBO Max. Such scale could reshape the market.
Parts of 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 pay and job cuts. It also said audiences would face reduced content choice.
