Warner Bros Discovery to Urge Shareholders to Reject Paramount's $108 Billion Takeover Bid
Warner Bros Discovery plans to advise its shareholders to reject a $108.4 billion hostile takeover bid from Paramount Skydance, according to multiple reports. The offer from Paramount was valued at $30 per share in cash, which is about $18 billion more than a competing $72 billion deal by Netflix that Warner Bros previously agreed to.
Paramount's bid would bring CBS and CNN under its umbrella and give the buyer a significant streaming advantage with access to Warner Bros' extensive library, including popular franchises such as Harry Potter, Batman, Game of Thrones, and HBO Max content.
However, Affinity Partners, an investment firm founded by Jared Kushner, was a major backer of Paramount's bid but reportedly pulled out citing competition concerns involving other strong bidders from Saudi Arabia and the Middle East. This development reportedly influenced Warner Bros Discovery's board decision to recommend rejecting Paramount's offer.
Warner Bros Discovery has faced challenges with the proposed takeover, including anticipated scrutiny from US and European antitrust regulators that could affect deal approval. The U.S. Department of Justice Antitrust Division is expected to review the transaction carefully.
Since October, Warner Bros Discovery has been exploring sale options after multiple expressions of interest, including the bids from Paramount Skydance and Netflix. In June, the company announced plans to split into two entities dividing TV, film, HBO Max assets and Discovery's portfolio, reflecting the complex dynamics surrounding these takeover attempts.
Concerns beyond regulatory hurdles were also raised by the Writers Guild of America East and West, who called for the merger to be blocked over fears of lower wages, job cuts, and diminished content quality.
Warner Bros Discovery declined to comment on these reports. Paramount and Affinity have been contacted for responses but have yet to provide statements.
