Shareholders face clear rejection advice
Warner Bros Discovery plans to urge shareholders to reject Paramount Skydance’s $108.4bn takeover bid. Reports say the board could issue its advice as early as Wednesday. Executives see major risks in the proposal. They believe the offer fails to serve long-term shareholder interests.
Paramount claims its bid tops a $72bn agreement Warner Bros reached with Netflix. That earlier deal covers film and streaming businesses. Paramount insists its proposal delivers greater value. Warner Bros leadership disputes that assessment.
Financing worries dominate board concerns
Warner Bros plans to cite financing risks as a key reason for rejection, according to the Financial Times. Executives question how Paramount would fund the transaction. They also worry about debt levels after completion. These concerns shape the board’s position.
Support for the bid has also weakened. Affinity Partners has reportedly withdrawn from backing the offer. The firm cited the involvement of two strong competitors. Jared Kushner founded Affinity Partners. The withdrawal reduces confidence in the bid’s stability.
Sale process attracts rival interest
Warner Bros announced a sale process in October after receiving multiple approaches. Interested parties included Paramount Skydance from the outset. The move signaled openness to strategic change. Industry players closely watched the process.
On 5 December, Warner Bros Discovery agreed to sell film and streaming assets to Netflix. The agreement focused on scale and distribution. One week later, Paramount Skydance launched a broader offer. That bid targeted the entire company, including television networks.
Political links and regulatory pressure
The billionaire Ellison family backs Paramount and maintains close ties to the president. Those connections add political sensitivity to the deal. Regulators would still review any takeover carefully. Authorities in the United States and Europe would assess competition risks.
Analysts expect a lengthy regulatory process. Officials would examine market dominance and consumer choice. Approval would remain uncertain throughout reviews.
Creative industry warns of fallout
A successful takeover would strengthen a buyer’s streaming position. The owner would gain a vast film and television library. Assets include Harry Potter, Friends, the MonsterVerse, and HBO Max. That scale could shift industry balance.
Film industry groups oppose merging Warner Bros with a rival. The Writers Guild of America urged regulators to block the deal. The union warned of lower pay and job losses. It also predicted reduced content choice for audiences.
