Warner Bros Discovery to reject Paramount’s $108 billion bid? Netflix may emerge winner of mega deal — What we know
According to Bloomberg and Reuters, citing sources familiar with the matter, Warner Bros. Discovery Inc. will reportedly reject Paramount Skydance Corp.’s $108.4 billion hostile takeover offer.
According to a Bloomberg report, the latest development in the race to acquire the production company comes amid Warner Bros. Discovery’s concerns about financing and similar terms.
Warner Bros. Discovery’s board will likely reject Paramount Skydance’s offer on Wednesday and ask shareholders to vote against the takeover, the Reuters report said.
Netflix remains a favorite
Warner Bros. is negotiating and reviewing the Paramount proposal, according to people who spoke to Bloomberg. The board still thinks Netflix’s offer is better.
Netflix was the first company to make a bid to acquire Warner Bros. Discovery earlier this month, and Paramount Skydance will soon follow suit with a larger bid.
According to Bloomberg, Warner Bros. The board will likely submit its response to Paramount’s tender offer by Wednesday.
Such a decision would mean that Netflix would pursue its acquisition offer and gain access to Warner Bros.’ famed film and TV studio and its extensive film and television library.
The race to acquire Warner Bros. Discovery is particularly interesting because the winner gets the portfolio, which includes classics ranging from “Casablanca” and “Citizen Kane” to contemporary favorites like “Harry Potter” and “Friends,” HBO and the HBO Max streaming service.
Netflix vs Paramount: What’s at stake?
Whoever wins the race to acquire Warner Bros. Discovery, whether it’s Netflix or Paramount’s Skydance, will have a huge advantage in the streaming wars. One of them will carry with them a treasure trove of content, a library long awaited to be acquired.
Netflix prevailed earlier this month with a $27 cash-and-stock offer from Warner Bros. for its non-cable assets.
Paramount CEO David Ellison then went directly to Warner Bros. shareholders with a $30 per share, all-cash offer for the entire company.
Paramount labeled its proposal as superior in regulatory filing and said it would pursue a better path to regulatory approval.
Jared Kushner’s company withdrew from the offer
Jared Kushner’s Affinity Partners has pulled out of a Paramount bid to acquire Warner Bros. Discovery, according to Bloomberg.
Paramount’s $108.4 billion bid to acquire the TV studio had seen Affinity as one of its financing partners.
Donald Trump’s son-in-law’s involvement in a deal that the president said he would personally review has drawn a lot of unwelcome attention from Kushner, Bloomberg reported, citing sources familiar with the news.
The Paramount bid is currently financed by $41 billion in new equity backed by the Ellison family and RedBird Capital and $54 billion in debt commitments from Bank of America, Citi and Apollo.
