Warner Bros Discovery Urges Rejection of Paramount Skydance's $108.4bn Bid, Supports Netflix Deal
Warner Bros Discovery has urged its shareholders to reject Paramount Skydance's $108.4 billion takeover bid, asserting that the streaming deal with Netflix is in the best interests of shareholders. On December 5, Warner Bros Discovery announced it had agreed to sell its film and streaming businesses to Netflix, under which Netflix would acquire the movie studio and the HBO streaming service but not Warner's TV networks.
Paramount Skydance's bid, valued at approximately $108.4 billion, is described by Paramount as superior to the Warner Bros-Netflix deal. However, Warner Bros Discovery's board stated that the Paramount offer carries numerous risks and disputed claims that billionaire Ellison family finances back the bid, while noting noted ties between Ellison and Paramount.
The board emphasized that Netflix's bid is well financed, with a clearer funding structure and less regulatory risk, unanimously recommending the Netflix deal as offering better long-term value. Under Netflix's proposal, Warner Bros would sell off its TV networks, including CNN and TNT, into a separate company. Conversely, Paramount seeks to acquire Warner Bros in its entirety, covering TV networks such as CBS, MTV, and Showtime.
Regulatory scrutiny in the US and Europe is anticipated for any Warner Bros-Netflix or Paramount acquisition due to the significant content library involved, which includes Harry Potter, the MonsterVerse, Friends, and the HBO Max streaming service. Industry observers expect the takeover saga to continue, with Paramount potentially returning with another bid.
