Warner Bros Rejects Paramount's Illusory Bid Amidst Fierce Acquisition Battle

Warner Bros Discovery's board rejected Paramount's $108.4 billion hostile takeover, calling it 'illusory' and accusing Paramount of misleading claims. The board favored Netflix's $27.75 per share offer, which poses fewer risks. Paramount argues its bid is superior, citing secured financing from the Ellison family.

In a dramatic showdown over control of Warner Bros Discovery, the company's board rebuffed Paramount's $108.4 billion hostile takeover proposal, labeling it as 'illusory' and accusing the studio giant of misleading shareholders about its funding guarantees. Paramount and Netflix have intensely competed for Warner Bros, which includes its film studios, HBO Max, and notable franchises like 'Harry Potter.'

The Warner Bros board expressed preference for Netflix's $27.75 per share offer, highlighting its robust debt commitments and binding nature, differing from Paramount's riskier bid, which lacks solid financial backing from the Ellison family. The board scheduled a shareholder vote expected in spring or early summer, according to Chairman Samuel Di Piazza.

Paramount defended its bid by criticizing Warner Bros for concealing crucial information, asserting their all-cash offer provides more stability than Netflix's fluctuating cash-and-stock offer. The ongoing battle intensifies as Netflix negotiates with U.S. and European regulators, while Paramount pledges 'air-tight financing' amid concerns over its creditworthiness.