Warner Bros Takeover Drama: Netflix vs Paramount

Warner Bros Discovery's board might advise rejecting Paramount Skydance's $108.4 billion bid, opting instead for Netflix's $27 billion offer. The decision impacts major assets, including a storied film library. Paramount's counter offers $30 per share in cash, backed by significant new equity and debt commitments.

In a dramatic development within the entertainment industry, Warner Bros Discovery's board is poised to reject Paramount Skydance's massive $108.4 billion takeover bid. Sources familiar with the decision indicate that the board is leaning towards recommending shareholders to oppose the offer.

This potential decision pivots the spotlight onto Netflix's previous $27 billion cash-and-stock bid, which could pave the way for Netflix to secure Warner Bros' valuable non-cable assets.

As the streaming wars intensify, Paramount CEO David Ellison has introduced a direct appeal to Warner Bros shareholders with a robust $30-a-share all-cash offer. Despite Paramount's claims of a clearer regulatory path, the backing by the Ellison family and RedBird Capital with substantial financial support makes the situation complex.

(With inputs from agencies.)