Warner Bros Discovery Rejects Paramount Skydance's $108.4bn Hostile Takeover Bid
Warner Bros Discovery (WBD) has urged its shareholders to reject the $108.4 billion hostile takeover bid from Paramount Skydance. The WBD board stated that the offer is inadequate and would impose significant risks and costs on shareholders. Paramount's all-cash bid seeks control of the entire company, including CNN, and is backed by interests connected to the Ellison family. The bid is financed by Affinity Partners, the Saudi Public Investment Fund (PIF), and the Qatar Investment Authority, though Kushner's Affinity Partners later stepped back from the funding.
WBD had previously agreed to a merger deal with Netflix valued at $82.7 billion, covering its movie studios, HBO, and streaming service. Samuel A. Di Piazza Jr., chair of WBD's board, commented that the Paramount bid does not address the company's concerns and emphasized that the Netflix merger offers a superior and more certain value.
This development is part of a high-profile and ongoing struggle for control of Warner Bros Discovery, following six prior proposals from Paramount. Regulatory considerations are expected to play a significant role in the outcome, with involvement from the US president noted. The future of CNN remains a key factor in the decision-making process.
