Board prepares swift response to blockbuster bid
Warner Bros Discovery plans to urge shareholders to reject Paramount Skydance’s $108.4bn takeover bid as early as Wednesday, reports say. The board plans a quick response as scrutiny around the proposal intensifies. Executives question the bid’s structure and its long-term implications for the company. The rejection would mark a decisive moment in a rapidly evolving media deal battle.
Paramount argues that its offer beats a separate $72bn agreement Warner Bros struck with Netflix for film and streaming assets. Paramount describes its proposal as superior in value and scope. The company aims to buy the entire group, including television networks. Warner Bros leaders remain unconvinced by that argument.
Funding doubts and a key backer steps away
Warner Bros plans to cite financing concerns as a central reason for rejection, according to the Financial Times. Executives worry about the funding mix behind the bid. They also question execution risks during integration. These issues weigh heavily on the board’s recommendation to investors.
At the same time, a major backer has stepped away from Paramount’s bid. Affinity Partners has reportedly withdrawn support, citing the presence of two strong competitors. Jared Kushner founded Affinity Partners. The firm’s exit weakens the financial backing behind the proposal.
Sale process and competing offers
Warner Bros put itself up for sale in October after receiving multiple expressions of interest. Potential buyers included Paramount Skydance from an early stage. The process attracted attention across the media industry. Strategic buyers and partners assessed different asset combinations.
On 5 December, Warner Bros Discovery agreed to sell its film and streaming businesses to Netflix. The deal focused on content and platform scale. One week later, Paramount Skydance returned with a broader offer. The new bid targeted the whole company, including television networks.
Political ties and regulatory hurdles ahead
The Ellison family backs Paramount and maintains close ties to the president. Those connections add political context to the proposed takeover. Regulators would still review any deal closely. Authorities in the United States and Europe would examine competition effects.
Analysts expect intense regulatory scrutiny for a Warner Bros takeover. Officials would assess market concentration and consumer impact. Approval would likely require concessions or prolonged negotiations.
Industry fears over jobs and content choice
A new owner would gain a powerful position in the streaming wars. The buyer would secure a vast film and television library. Assets include Harry Potter, the MonsterVerse, Friends, and the HBO Max service. That scale could reshape competition.
Parts of the film industry oppose any merger with a rival. The Writers Guild of America’s East and West branches urged regulators to block it. They warned about lower wages and job losses. The guild also said viewers would face reduced content choice.
