Studio Standoff: Warner Bros. Set to Reject Paramount’s Latest Offer

Warner Bros Discovery’s board is expected to make a call very soon on Paramount Skydance’s massive takeover bid, and the answer is likely to be no.

According to people familiar with the situation, the board could announce its decision as early as Wednesday and is expected to recommend that shareholders vote against Paramount’s $108.4 billion offer. The information was reported by Reuters.

If the board follows through, Warner Bros Discovery would instead stick with Netflix’s earlier buyout deal. That would be another sharp turn in a takeover battle that has been closely watched across Hollywood and Wall Street.

The prize is huge. Warner Bros Discovery owns one of the most valuable collections of film and TV content in the world, including classics like “Casablanca” and “Citizen Kane”, along with modern hits such as “Harry Potter” and “Friends”. The company also owns HBO and the HBO Max streaming service.

Whoever wins this fight would get a major edge in the streaming wars. The company’s deep library of movies and shows has been a target for years, as streaming platforms race to lock in well-known and long-lasting content.

Netflix appeared to be in the lead earlier this month after it agreed to a $27 billion cash-and-stock deal for Warner Bros Discovery’s non-cable assets. That deal looked settled until Paramount’s CEO, David Ellison, stepped in with a higher offer. Ellison took his proposal directly to shareholders, offering $30 per share in cash for the entire company.

Paramount has argued in regulatory filings that its bid is better than Netflix’s and would face fewer regulatory hurdles. The company said its offer is backed by $41 billion in new equity, supported by the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi, and Apollo.

However, Bloomberg reported that Jared Kushner’s Affinity Partners, which had been one of Paramount’s financing partners, is now pulling out of the deal. That exit could weaken Paramount’s position as the board prepares to make its recommendation.

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