Board prepares firm stance for shareholders
Warner Bros Discovery plans to urge shareholders to reject Paramount Skydance’s $108.4bn takeover bid. Reports say the board could issue guidance as early as Wednesday. Directors see major financial and strategic risks. They argue the proposal offers limited certainty and unclear benefits.
Paramount says its bid tops a $72bn agreement Warner Bros reached with Netflix. That deal covers film and streaming businesses. Paramount presents its offer as more attractive overall. Warner Bros executives challenge that conclusion.
Financing fears drive rejection plans
Warner Bros plans to cite financing concerns as a key reason for rejection, according to the Financial Times. Executives question how Paramount would secure the required funding. They also worry about debt levels after completion. These concerns dominate internal discussions.
Support for the bid has weakened further. Affinity Partners has reportedly withdrawn from backing the offer. The firm cited the involvement of two strong competitors. Jared Kushner founded Affinity Partners. The exit raises fresh doubts about the bid’s credibility.
Sale process attracts competing visions
Warner Bros launched a sale process in October after receiving multiple approaches. Paramount Skydance emerged early among interested parties. Management explored options to reshape the company. The process drew intense attention across the media industry.
On 5 December, Warner Bros Discovery agreed to sell film and streaming assets to Netflix. The deal focused on scale and global distribution. The following week, Paramount Skydance returned with a broader proposal. That bid targeted the entire group, including television networks.
Political ties and regulatory tests ahead
The Ellison family backs Paramount and maintains close ties to the president. Those connections add political sensitivity to the takeover effort. Regulators would still review any deal closely. Authorities in the United States and Europe would assess competition risks.
Analysts expect a difficult approval process. Regulators would examine market power and consumer choice. Clearance would remain uncertain for an extended period.
Industry warns of lasting impact
A successful takeover would strengthen a buyer’s position in streaming. The new owner would gain a vast film and television library. Assets include Harry Potter, Friends, the MonsterVerse, and HBO Max. Such scale could reshape industry competition.
Parts of the film industry oppose merging Warner Bros with a rival. The Writers Guild of America urged regulators to block the deal. The union warned of lower wages and job losses. It also said audiences would face reduced content choice.
