Warner Bros Discovery likely to reject Paramount’s $108.4 billion bid, back Netflix offer

New Delhi: Warner Bros Discovery’s board is expected to advise shareholders to vote against Paramount Skydance’s takeover proposal, according to a Reuters report, potentially clearing the way for renewed backing of Netflix’s competing offer.

The board could announce a decision as early as Wednesday on Paramount Skydance’s $108.4 billion bid. A recommendation against the offer would mark another development in the contest for Warner Bros Discovery’s assets, which include its film and television studio, a deep content library, HBO, and the HBO Max streaming service.

The catalogue includes titles ranging from “Casablanca” and “Citizen Kane” to franchises such as “Harry Potter” and television series including “Friends”.

The outcome of the bidding process is seen as significant for the streaming industry, with the successful bidder securing access to a large and historically valuable content library.

Earlier this month, Netflix emerged with a $72 billion cash-and-stock proposal for Warner Bros Discovery’s non-cable assets. Paramount chief executive David Ellison subsequently approached shareholders directly with a $30-per-share, all-cash offer for the entire company.

In regulatory filings, Paramount has stated that its proposal is superior to Netflix’s offer and would face fewer regulatory hurdles. The bid is financed through $41 billion in new equity backed by the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi and Apollo.

Jared Kushner’s Affinity Partners, which had been among Paramount’s financing backers, is exiting the process, as reported by Bloomberg.