Warner Bros Discovery to reject Paramount's $108 billion bid? Netflix may emerge winner of mega deal — What we know
The Warner Bros. board, which deliberated on Paramount's bid, still holds the view that Netflix's offer is a better one, according to people who spoke to Bloomberg.
The battle to acquire Warner Bros Discovery is heating up(Bloomberg)
Warner Bros. Discovery Inc. is likely to turn down Paramount Skydance Corp.’s hostile takeover bid worth $108.4 billion, Bloomberg and Reuters reported, citing people familiar with the matter.
According to Bloomberg, the latest twist in the race to acquire the production house comes amid Warner Bros. Discovery's concerns regarding financing and other such terms.
The board of Warner Bros. Discovery is likely to reject Paramount Skydance's offer as early as Wednesday and may ask shareholders to vote against the takeover, Reuters reported.
Netflix remains a favourite
The Warner Bros. board, after reviewing Paramount's bid, continues to view Netflix's offer as a better one, according to people who spoke with Bloomberg.
Netflix was the first to bid to acquire Warner Bros. Discovery earlier this month, with Paramount Skydance following suit with a bigger all-cash offer.
The board is likely to file its response to Paramount's tender offer by Wednesday, Bloomberg reported.
Such a decision would allow Netflix to retain its buyout offer and gain access to Warner Bros.' storied film and TV studio, and its extensive film and television library.
The race to acquire Warner Bros. Discovery is particularly interesting, as the winner gets the portfolio, including classics ranging from Casablanca and Citizen Kane to contemporary favourites like Harry Potter and Friends, HBO and the HBO Max streaming service.
The winner of the race to acquire Warner Bros. Discovery will gain a big advantage in the streaming wars, securing a treasure trove of content long eyed for acquisition.
Netflix earlier this month agreed to a $27 cash-and-stock deal for Warner Bros.' non-cable assets, reported Reuters. 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 labelled its offer as superior in a regulatory filing, saying it will enjoy a better path in regulatory approval.
Paramount's $108.4 billion bid to acquire the TV studio had seen Affinity as one of its financing partners.
The participation of US President Donald Trump’s son-in-law in a deal that the president has said he would personally review drew a lot of unwelcome attention to Kushner, Bloomberg reported, quoting people familiar with the news.
The Paramount bid is now financed 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.
