Paramount's Big Play: Skydance's Takeover Bid Challenges Netflix

Warner Bros Discovery's board is expected to advise against Paramount Skydance's $108.4 billion takeover bid, opting instead to support Netflix's buyout offer. The decision is a pivotal moment in the streaming wars, with each bidder seeking control over Warner Bros' extensive film and TV assets.

Warner Bros Discovery is poised to make a critical decision regarding a $108.4 billion takeover bid from Paramount Skydance. Sources indicate that the board is likely to recommend shareholders reject the offer, siding with Netflix's proposal instead. This decision could redefine the competitive landscape of the streaming industry.

Gaining control of Warner Bros' storied film and TV assets, which include classics like 'Casablanca' and 'Harry Potter', has long been a coveted prize. The winning bid would secure a formidable advantage in the ongoing streaming wars. Warner Bros also owns the HBO Max streaming service, a significant player in the market.

Netflix initially secured a victory with a $27 billion cash-and-stock bid for Warner Bros' non-cable divisions. However, Paramount's David Ellison countered with a $30-a-share, all-cash bid for the entire company. While Paramount argues that their offer provides a clearer regulatory path, it faces formidable competition from Netflix.

(With inputs from agencies.)