Warner Bros Rebukes Paramount's Contentious Takeover Bid

Warner Bros Discovery's board rejected Paramount Skydance's $108.4 billion takeover bid, citing lack of financing guarantees from the Ellison family. Preferring Netflix's offer, Warner Bros highlighted risks in Paramount's plan and questioned its financial assurances, labeling the proposal 'illusory' and fraught with uncertainties.

Warner Bros Discovery has firmly rejected Paramount Skydance's aggressive $108.4 billion bid, challenging its financial credibility. The board emphasized that Paramount failed to secure proper financing commitments, notably from the Ellison family, undermining the terms of its offer.

While Paramount claims robust financial backing, Warner Bros remains skeptical, pointing to potential structural risks and questionable creditworthiness in the proposed financing plan. The board sided with Netflix's bid, which offers binding agreements and stronger financial assurances.

Paramount's plan presents significant risks, including high debt levels and stringent operational restrictions, which Warner Bros argues could destabilize its business. Despite Paramount's regulatory efforts, Warner Bros lacks confidence in the proposal, describing it as untenable for shareholders.

(With inputs from agencies.)