Board signals firm opposition
Warner Bros Discovery plans to advise shareholders to reject Paramount Skydance’s $108.4bn takeover bid. Reports say the recommendation could come as early as Wednesday. Board members see significant risks in the proposal. They believe the offer lacks sufficient certainty and strategic clarity.
Paramount says its bid beats a $72bn agreement Warner Bros reached with Netflix. That earlier deal covers film and streaming operations. Paramount describes its proposal as superior in value and scope. Warner Bros executives disagree with that assessment.
Funding structure raises red flags
Warner Bros plans to highlight financing concerns behind the bid, according to the Financial Times. Executives question how Paramount would raise the required funds. They also fear higher debt levels after completion. These doubts weigh heavily on the board’s thinking.
The bid has also lost a key supporter. Affinity Partners has reportedly withdrawn from backing the offer. The firm cited the involvement of two strong competitors. Jared Kushner founded Affinity Partners. Its exit weakens confidence in the proposal.
Sale process and rival approaches
Warner Bros launched a sale process in October after receiving multiple expressions of interest. Potential buyers included Paramount Skydance from an early stage. The move reflected pressure to reshape the business. Investors and rivals monitored developments closely.
On 5 December, Warner Bros Discovery agreed to sell film and streaming assets to Netflix. The deal focused on scale and distribution reach. The following week, Paramount Skydance returned with a broader proposal. That offer targeted the entire company, including television networks.
Political ties and regulatory risks
The billionaire Ellison family backs Paramount and has close ties to the president. Those links add political context to the takeover attempt. Regulators would still scrutinise any deal. Authorities in the United States and Europe would review competition risks.
Analysts expect a challenging approval process. Officials would examine market power and consumer choice. The outcome would remain uncertain for months.
Industry backlash over jobs and content
A successful takeover would strengthen a buyer’s streaming position. The owner would gain a vast library of films and series. Assets include Harry Potter, Friends, the MonsterVerse, and HBO Max. Such scale could reshape the market.
Parts of the film industry oppose merging Warner Bros with a rival. The Writers Guild of America urged regulators to block the deal. It warned of job losses and lower wages. The group also said viewers would face less content choice.
