Warner Bros Rejects Paramount's $108.4 Billion Bid Amid Financing Concerns

Warner Bros Discovery's board has rejected Paramount Skydance's $108.4 billion bid, citing insufficient financial assurances. Paramount's offer was deemed inferior to Netflix's merger proposal. The board raised concerns about Paramount's financing structure and creditworthiness, with debates continuing over regulatory approvals and potential job losses in Hollywood.

Warner Bros Discovery's board has turned down Paramount Skydance's $108.4 billion bid, citing concerns over financing assurances. In a regulatory filing, Warner Bros claimed that Paramount failed to provide a guaranteed financial backing for its cash offer, allegedly misleading shareholders.

The board highlighted numerous risks associated with Paramount's offer, considering it inferior to Netflix's $27.75 per share proposal. Paramount's bid relied on uncertain financial commitments from the Ellison family, contrasting with Netflix's binding agreement that requires no equity financing.

Paramount continues lobbying for shareholder support, while Netflix, supported by robust market capitalization, stays well-positioned with the regulatory bodies. Concerns linger over Paramount's financial condition, creditworthiness, and proposed operational changes that could lead to significant job cuts in Hollywood.

(With inputs from agencies.)