Warner Bros Discovery is preparing to recommend shareholders reject Paramount Skydance’s hostile all-cash bid of $30 (€25.5) per share, a move widely seen as predictable given WBD’s existing agreement with Netflix– but unlikely to be the last word in the battle for the studio and streaming group.
Reports say WBD’s board has concerns around the reliability of Paramount’s financing package and deal terms, even though the headline offer values WBD at about $108.4 billion (€92.1 billion) including debt.
Paramount launched the tender offer on 8 December, attempting to bypass WBD management and outbid Netflix’s agreed $27.75 per share cash-and-stock deal for WBD’s streaming and studios assets. WBD said at the time it would set out its recommendation within 10 business days via an SEC filing and told shareholders to take no action while it reviewed the approach.
The pressure on Paramount has increased after Jared Kushner’s Affinity Partners withdrew from backing the bid, in a setback to the consortium story being pitched to WBD investors.
Even with a rejection expected, Paramount still has options. Its offer remains open into early January, giving it room to improve price, adjust structure or extend the timetable if it believes shareholder support is there.
