Warner Bros. Discovery Rejects Paramount Bid, Eyes Netflix Offer Amid Takeover Battle
Warner Bros. Discovery's board is urging shareholders to reject Paramount Skydance's unsolicited takeover bid, citing inadequate value and significant risks, while recommending consideration of Netflix's superior offer.
Overview
Warner Bros. Discovery (WBD) is advising its shareholders to reject unsolicited and hostile takeover bids from Paramount Skydance, deeming them insufficient.
The WBD board recommends that investors instead consider a superior offer from Netflix, highlighting concerns over Paramount's bid's value and associated risks.
Significant concerns have been raised regarding Paramount's financial stability and the specific funding sources for its proposed acquisition of Warner Bros. Discovery.
WBD has formally rejected Paramount's offer, explicitly labeling it as 'illusory' and inadequate for its shareholders' best interests.
Paramount, in response, has accused Warner Bros. Discovery's board of failing to engage properly or sufficiently with its proposed takeover bid.
Analysis
Center-leaning sources cover this story neutrally, focusing on reporting the facts of Warner Bros. Discovery's rejection of Paramount's bid. They present multiple perspectives, including WBD's rationale, Netflix's positive reaction, and relevant background on Paramount's offer and its key figures. The reporting avoids loaded language and maintains an objective tone.
Articles (20)
FAQ
Netflix's offer is a cash and stock transaction valued at $27.75 per WBD share, with a total enterprise value of approximately $82.7 billion (equity value of $72.0 billion).
The WBD board deems Paramount Skydance's unsolicited bid inadequate in value, illusory, and carrying significant risks, including concerns over Paramount's financial stability and funding sources.
The deal includes Warner Bros. film and television studios, HBO Max, HBO, DC Studios, DC Entertainment, and the company's media library; it excludes WBD's Global Linear Networks business, planned for separation in Q3 2026.
Netflix's bid of about $28 per share (adjusted to $27.75) for studios and streaming outpaced Paramount's around $27 per share for the full company, including cable networks; WBD views Netflix's as superior.
History
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