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Warner Bros. Discovery Poised to Reject Paramount Skydance Bid as Board Weighs Netflix Deal

Directors cite financing certainty as the key advantage of Netflix.

Overview

  • Reports say the board plans to turn down Paramount Skydance’s amended offer and will meet next week before making a final decision.
  • Paramount’s revised proposal is valued around $108.4 billion, keeps the $30-per-share cash term, and adds a roughly $40.4 billion personal guarantee from Larry Ellison.
  • Warner views Netflix’s lower nominal offer of about $82.7 billion as superior due to clearer financing and lower execution risk.
  • Directors are concerned a Paramount deal would increase leverage and add governance constraints on debt decisions, with no explicit commitment to cover Warner’s roughly $2.8 billion break fee owed to Netflix if terminated.
  • Paramount argues its deal would face fewer regulatory hurdles and create a studio larger than Disney, while Netflix’s agreement targets only Warner’s studio and streaming businesses.