Board ready to advise shareholders
Warner Bros Discovery plans to urge shareholders to reject Paramount Skydance’s $108.4bn takeover bid. Reports say the board could deliver its recommendation as early as Wednesday. Executives see major financial and strategic risks. They argue the offer lacks clarity and long-term value.
Paramount claims its bid surpasses a $72bn deal Warner Bros reached with Netflix. That agreement covers film and streaming assets. Paramount presents its offer as superior. Warner Bros leaders strongly contest that view.
Financing concerns shape decision
Warner Bros plans to highlight funding issues as a primary reason for rejection, according to the Financial Times. Executives question how Paramount would finance the transaction. They also fear heavy debt after completion. These concerns dominate board discussions.
Backing for the bid has weakened further. Affinity Partners has reportedly pulled support. The firm cited the involvement of two strong competitors. Jared Kushner founded Affinity Partners. Its exit raises doubts about the offer’s stability.
Sale process attracts multiple bidders
Warner Bros launched a formal sale process in October after receiving multiple expressions of interest. Paramount Skydance emerged early as a potential buyer. Management explored options 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. One week later, Paramount Skydance returned with a broader proposal. That bid targeted the entire company, including television networks.
Political connections and regulatory scrutiny
The Ellison family backs Paramount and maintains close ties to the president. Those links add political sensitivity to the takeover. Regulators would still examine any deal closely. Authorities in the United States and Europe would assess competition risks.
Analysts expect a challenging approval process. Regulators would review market power and consumer choice. Clearance would remain uncertain for months.
Industry voices concerns
A successful takeover would strengthen a buyer’s position in streaming. 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.
