Key Points
- The Warner Bros. Discovery board is likely to reject Paramount’s $108.4 billion takeover bid.
- They are expected to stick with a previous, smaller deal from Netflix for its studio and streaming assets.
- Paramount had launched a hostile, all-cash bid for the entire company, which was larger than Netflix’s offer.
- The winner gains control of the Warner Bros. studio, HBO, and a vast library of iconic content.
The board of Warner Bros. Discovery is set to make a major decision this week, and it appears to be bad news for Paramount and Skydance. Sources say the board will likely reject Paramount’s massive $108.4 billion hostile takeover bid and instead recommend that shareholders stick with a previous deal from Netflix.
This decision is the latest twist in a high-stakes battle for one of Hollywood’s most prized assets. Netflix had already secured an $82.7 billion deal to buy Warner’s non-cable assets, including its legendary film and TV studio.
But Paramount, led by CEO David Ellison, swooped in with a bigger, all-cash offer for the entire company, taking the fight directly to shareholders.
The winner of this fight gets a huge advantage in the streaming wars. They will control the Warner Bros. studio, HBO, the HBO Max streaming service, and a vast content library featuring classics such as “Casablanca” and modern blockbusters such as “Harry Potter.”
Paramount has argued that its offer is better for shareholders and has a clearer path to regulatory approval. However, its bid may have hit a snag: it was recently reported that Jared Kushner’s investment firm, Affinity Partners, is withdrawing from the financing deal.
The Warner Bros. board is expected to announce its final decision as early as Wednesday.
