Deal Drama: Warner Bros. Likely to Turn Down Paramount Offer

Warner Bros Discovery is close to making a major decision that could reshape the media and streaming business. People familiar with the talks say the company’s board may reveal its choice as early as Wednesday.

The board is expected to tell shareholders to reject a takeover proposal from Paramount Skydance valued at about $108.4 billion. This information comes from sources cited by Reuters.

If the board moves in that direction, Warner Bros Discovery would stay aligned with Netflix, which has already made a competing offer. That outcome would add another turn to a fast-moving fight over one of Hollywood’s most valuable groups of assets. Warner Bros Discovery owns a historic movie and TV studio, a massive content library, HBO, and the HBO Max streaming platform. Its catalog includes well-known titles such as “Casablanca”, “Citizen Kane”, “Harry Potter”, and “Friends”.

The company that wins control of these assets would gain a strong edge in the streaming market. Big platforms are under pressure to secure popular and long-lasting content, and Warner Bros Discovery’s library has been seen as a key prize for years.

Earlier this month, Netflix appeared to take the lead after agreeing to a $27 billion deal made up of cash and stock for Warner Bros Discovery’s non-cable businesses. Soon after, Paramount entered the picture with a more aggressive move. Paramount CEO David Ellison bypassed management and appealed directly to shareholders, offering $30 per share in cash for the entire company.

Paramount has said in official filings that its offer is stronger than Netflix’s and would be easier to clear with regulators. The company said the bid is backed by $41 billion in new equity from the Ellison family and RedBird Capital, along with $54 billion in debt lined up from Bank of America, Citi, and Apollo.

Still, the challenge for Paramount has grown. Bloomberg reported that Affinity Partners, the investment firm led by Jared Kushner, has pulled out of the financing group backing Paramount’s offer. That exit raises questions about how solid the bid remains.

Have something to add? Let us know in the comments!