Warner Bros discovery likely to reject $108.4 billion Paramount bid

Warner Bros Discovery’s board is expected to recommend that shareholders vote against Paramount Skydance’s $108.4 billion takeover bid and instead support Netflix’s offer, according to sources familiar with the matter.

The board could announce its decision as early as Wednesday. Reaffirming its support for Netflix would mark the latest twist in a high-stakes bidding war for Warner Bros’ film and television studio and its extensive content library, which includes classics such as Casablanca and Citizen Kane, as well as franchises like Harry Potter and Friends. Warner Bros also owns the HBO Max streaming service.

Paramount CEO David Ellison has argued that his company’s all-cash bid of $30 per share offers a clearer path to regulatory approval than Netflix’s proposal. The offer is backed by $41 billion in new equity from the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi and Apollo.

Netflix earlier this month won board support with a $27 cash-and-stock bid for Warner Bros’ non-cable assets. A Warner Bros Discovery spokesperson declined to comment.

According to Bloomberg, Jared Kushner’s Affinity Partners, one of Paramount’s financing partners, has exited the deal. Paramount and Affinity Partners did not immediately respond to requests for comment.