Warner Bros Discovery’s board is expected to recommend that shareholders reject Paramount Skydance’s $108.4 billion acquisition proposal, with a formal announcement possibly coming as soon as Wednesday, according to sources familiar with the matter. The move highlights the intensifying contest for control over Warner Bros Discovery’s extensive media assets, a prize seen as pivotal in the battle among streaming giants.
The successful acquirer would secure a substantial advantage as competition escalates within the rapidly evolving streaming sector.
Earlier in the month, Netflix submitted a cash-and-stock offer valued at $27 per share for Warner Bros’ non-cable operations. That bid placed Netflix as the favored option initially.
In response, Paramount CEO David Ellison directly approached Warner Bros shareholders, presenting an all-cash proposal at $30 per share for the entire company. Paramount claims in regulatory documents that its bid surpasses Netflix’s both in value and in the likelihood of obtaining regulatory approval.
Paramount’s offer is underpinned by $41 billion in fresh equity provided by the Ellison family and RedBird Capital, alongside $54 billion in debt financing led by Bank of America, Citi, and Apollo, according to its regulatory filings.
Warner Bros Discovery’s board has reportedly raised concerns regarding the certainty and specific terms tied to Paramount’s all-cash $30-per-share bid for the entire company. While Paramount’s approach carries a higher nominal value for Warner Bros Discovery, the board is said to view Netflix’s $27-per-share cash-and-stock proposal for a part of the company as stronger, based on the perceived reliability of its financial backing and transactional terms.
