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Warner Bros. Discovery Rejects Sweetened Paramount Offer, Backs Netflix Deal

Directors call the rival proposal inferior, citing higher financing risk.

Overview

  • The board unanimously turned down the improved Paramount Skydance bid, saying it falls short of the signed Netflix agreement and is not in the company’s interest.
  • Paramount Skydance has a hostile offer of about $108 billion on the table, supported by a roughly $40 billion personal guarantee from Larry Ellison.
  • Netflix announced in December a planned takeover of Warner Bros. Discovery valued at nearly $83 billion, covering the studios and streaming assets including HBO Max.
  • Management has warned that the Paramount proposal would require very large debt financing, reported at more than $50 billion, and could disrupt ongoing operations.
  • WBD continues to urge shareholders to approve the Netflix deal as U.S. and European regulators review the transaction, with the fight taking a political turn as President Trump questions Netflix’s plan and presses for a CNN sale.