Board readies formal advice to shareholders
Warner Bros Discovery plans to advise shareholders to reject Paramount Skydance’s $108.4bn takeover bid. Reports say the guidance could come as early as Wednesday. Board members see substantial risks in the proposal. They argue the offer creates uncertainty around value and execution.
Paramount says its bid outperforms a $72bn agreement Warner Bros reached with Netflix. That deal focuses on film and streaming assets. Paramount claims broader strategic benefits. Warner Bros executives contest that view.
Funding questions weaken the proposal
Warner Bros plans to highlight financing concerns as a major reason for rejection, according to the Financial Times. Executives doubt the robustness of the funding structure. They also worry about leverage after the deal closes. These concerns shape the board’s stance.
Backing for the takeover has also eroded. Affinity Partners has reportedly withdrawn support for the bid. The firm cited the involvement of two strong competitors. Jared Kushner founded Affinity Partners. Its exit undermines confidence in the offer.
Sale process and shifting strategy
Warner Bros began exploring a sale in October after receiving multiple expressions of interest. Paramount Skydance emerged early as a potential buyer. Management assessed options to restructure the business. The process drew wide attention across the industry.
On 5 December, Warner Bros Discovery agreed to sell film and streaming operations to Netflix. The deal aimed to strengthen scale and distribution. The following week, Paramount Skydance launched a revised proposal. That bid sought control of the entire group, including television networks.
Political ties and regulatory scrutiny
The Ellison family backs Paramount and holds close ties to the president. Those relationships add political context to the bid. Regulators would still review any takeover in detail. Authorities in the United States and Europe would assess competition issues.
Experts expect a demanding approval process. Regulators would examine market concentration and consumer impact. Clearance would remain uncertain throughout reviews.
Industry groups raise alarm
A successful takeover would strengthen a buyer’s position in streaming. The new owner would gain a vast film and television library. Key assets include Harry Potter, Friends, the MonsterVerse, and HBO Max. Such scale could reshape competition.
Sections of the film industry oppose merging Warner Bros with a rival. The Writers Guild of America urged regulators to block the deal. The union warned of lower wages and job losses. It also said audiences would face reduced content choice.
