Warner Bros Faces Off: Paramount's Hostile Bid vs. Netflix's Strategic Offer

Warner Bros has rejected a USD 77.9 billion hostile takeover bid from Paramount, instead backing a USD 72 billion offer from Netflix. Paramount's proposal includes significant debt, raising shareholders' concerns. Conversely, Netflix's proposal focuses on Warner's studio and streaming sectors, prompting antitrust scrutiny on both offers.

Warner Bros has once again dismissed a takeover bid from Paramount, as the company urged its shareholders on Wednesday to support a rival offer by Netflix.

Despite Paramount's efforts to enhance its USD 77.9 billion hostile bid for Warner Bros, which includes an 'irrevocable personal guarantee' from Oracle's Larry Ellison, Warner's board remains committed to Netflix's USD 72 billion deal, citing greater value and certainty.

Under the chairmanship of Samuel Di Piazza Jr, Warner highlighted the risks associated with Paramount's proposal, citing heavy debt financing and lack of shareholder protections. Netflix's targeted acquisition is set to drastically separate Warner's streaming and studio businesses from its news and cable divisions, potentially facing extensive antitrust scrutiny.

(With inputs from agencies.)