Warner Bros likely to reject Paramount’s $108.4 billion takeover bid, backs Netflix offer: Report

Warner Bros. Discovery is set to advise its shareholders to vote against Paramount Skydance’s $108.4 billion takeover proposal, according to a Reuters report citing sources familiar with the matter. The company’s board is expected to announce its decision as early as Wednesday.

If confirmed, the move would signal Warner Bros. Discovery’s intention to recommit to Netflix’s competing bid, intensifying the high-stakes battle for one of Hollywood’s most valuable entertainment portfolios.

Warner Bros leans towards Netflix deal

There have been reports that the board of directors of Warner Bros. Discovery is mostly in favor of Netflix's offer, which has been on top with a $72 billion cash-and-stock deal for the company's non-cable assets since the start of this month. The non-cable assets include the famous Warner Bros film and TV studio, the streaming services of HBO and HBO Max, and the huge content library that already comprises everything from classic films like Casablanca and Citizen Kane to global franchises like Harry Potter and the hit series Friends.

A Warner Bros. Discovery spokesman informed that the company would not be answering the press release.

The media experts believe that the winner of the war over global streaming market, which is already heated up, would, at least in part, be determined by who owns the Warner Bros. enormous content library.

Details of Paramount’s takeover bid

Following Netflix’s move, Paramount CEO David Ellison made a direct appeal to Warner Bros. shareholders with an all-cash offer valuing the company at $30 per share, or about $108.4 billion. Paramount has argued in regulatory filings that its bid is superior to Netflix’s proposal and would face fewer regulatory hurdles.

The Paramount offer is backed by $41 billion in new equity from the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi, and Apollo. However, Bloomberg reported that Affinity Partners, led by Jared Kushner and one of Paramount’s financing partners, has exited the bidding process.

Paramount and Affinity Partners did not immediately respond to Reuters’ requests for comment.

Streaming war intensifies

With multiple suitors vying for Warner Bros. Discovery, the outcome of the board’s decision could reshape the global media and streaming landscape. A final verdict from shareholders is expected to determine whether Netflix secures one of the industry’s most prized content libraries or whether Paramount can revive its takeover bid.