Directors prepare message for investors
Warner Bros Discovery plans to urge shareholders to reject Paramount Skydance’s $108.4bn takeover bid. Reports say directors could issue guidance as early as Wednesday. The board sees serious risks in the proposal. Executives believe the bid creates uncertainty for investors and staff.
Paramount argues its offer surpasses a $72bn agreement Warner Bros reached with Netflix. That deal covers film and streaming operations. Paramount calls its proposal superior in value. Warner Bros leaders reject that claim.
Deal funding sparks concern
Warner Bros plans to cite financing worries as a key reason for rejection, according to the Financial Times. Executives question how Paramount would secure funding. They also fear a heavy debt burden after completion. These issues dominate board discussions.
Support for the bid has weakened. Affinity Partners has reportedly withdrawn from backing the takeover. The firm blamed the presence of two strong competitors. Jared Kushner founded Affinity Partners. The withdrawal reduces confidence in the offer.
Sale process draws multiple suitors
Warner Bros opened a sale process in October after receiving multiple approaches. Interested parties included Paramount Skydance from an early stage. Management explored options to reshape the business. The process attracted strong industry attention.
On 5 December, Warner Bros Discovery agreed to sell film and streaming assets to Netflix. The agreement focused on global scale and reach. One week later, Paramount Skydance returned with a broader bid. That offer targeted the full company, including television networks.
Political links and regulatory barriers
The Ellison family backs Paramount and maintains close ties to the president. Those connections add political sensitivity to the deal. Regulators would still examine any takeover closely. Authorities in the United States and Europe would assess competition risks.
Analysts expect intense scrutiny. Officials would study market power and consumer choice. Approval would remain far from certain.
Creatives warn of job losses
A successful takeover would boost a buyer’s position in streaming. The owner would gain a vast film and television library. Assets include Harry Potter, Friends, the MonsterVerse, and HBO Max. That scale could shift industry dynamics.
Parts of the film industry oppose merging Warner Bros with a rival. The Writers Guild of America urged regulators to block the deal. The union warned of lower pay and job cuts. It also said audiences would face reduced content choice.
