Warner Bros set to reject Paramount bid, back Netflix
Warner Bros. Discovery’s board of directors may soon announce a decision on Paramount Skydance’s US$108.4 billion ($163.3 billion) takeover bid, and the board will likely recommend shareholders vote against the offer, according to people familiar with the matter.
Netflix’s decision to recommit to its acquisition offer would mark the latest development in the race for assets such as Warner Bros.’ storied film and TV studio and its extensive film and television library, whose portfolio includes classics ranging from Casablanca and Citizen Kane to contemporary favorites such as Harry Potter and Friends, HBO and the HBO Max streaming service.
A spokesperson for Warner Bros. Discovery declined to comment.
The winner will gain a huge advantage in the streaming wars by locking in a deep content library, which has long been an acquisition target.
Netflix prevailed earlier this month with a US$27 ($A41) cash and stock offer for Warner Bros’ non-cable assets.
Paramount CEO David Ellison then went directly to Warner Bros shareholders with a cash offer of US$30 per share ($A45) for the entire company.
In regulatory filings, Paramount said its bid was superior to Netflix’s and would enjoy a clearer path to regulatory approval.
The offering is financed by US$41 billion ($62 billion) of new equity capital backed by the Ellison family and RedBird Capital and US$54 billion ($81 billion) in debt commitments from Bank of America, Citi and Apollo.
Jared Kushner’s Affinity Partners, one of Paramount’s financing partners, is exiting the battle, according to Bloomberg.
Paramount and Affinity Partners did not immediately respond to Reuters’ request for comment.
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