Warner Bros Discovery likely to stick with Netflix and reject $108.4 billion Paramount bid

Warner Bros Discovery’s board is reportedly set to advise shareholders to reject Paramount Skydance’s $108.4 billion takeover bid, with a decision potentially announced as early as Wednesday. This development marks the latest turn in the intense competition for the media giant’s extensive assets.

The coveted portfolio includes Warner Bros’ historic film and television studio, boasting a vast library from classics like "Casablanca" and "Citizen Kane" to modern hits such as "Harry Potter" and "Friends," alongside HBO and the HBO Max streaming service.

Securing these assets would grant the successful bidder a significant advantage in the ongoing streaming wars.

Earlier this month, Netflix had emerged as the preferred suitor with a $27 cash-and-stock bid for Warner Bros' non-cable assets.

Paramount CEO David Ellison then went directly to Warner Bros' shareholders with a $30-a-share, all-cash bid for the whole company.

Paramount has asserted in regulatory filings that its offer is superior to Netflix’s and would benefit from a clearer path to regulatory approval. Its proposal is backed by $41 billion in new equity, which is backed by the Ellison family and RedBird Capital, and $54 billion of debt commitments from Bank of America, Citi and Apollo.

Meanwhile, Jared Kushner’s Affinity Partners, previously a financing partner for Paramount, is reportedly withdrawing from the bidding process.

A spokesperson for Warner Bros Discovery declined to comment on the matter. Paramount and Affinity Partners did not immediately respond to requests for comment.

In his effort to win over Donald Trump’s approval as he looks to gobble up Warner Bros. Discovery, Paramount chief executive David Ellison told White House officials in recent days that he would make “sweeping changes” at the cable news channel that sparks the president’s ire the most: CNN.

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According to the Wall Street Journal, Ellison – who launched a $108 billion hostile takeover bid of WBD after Netflix and Warner announced their deal last week – made a trip to Washington recently to assure Trump administration officials that CNN would have a new look if he bought the network’s parent company.