Warner Bros Discovery Stands Firm in Face of Paramount's Hostile Bid

Warner Bros Discovery is expected to reject a $108.4 billion hostile bid from Paramount Skydance, despite backing from billionaire Larry Ellison. Instead, Warner Bros may pursue a deal with Netflix, presenting fewer execution risks. Paramount's proposal faces scrutiny over regulatory and financing concerns.

Warner Bros Discovery appears set to reject a revised $108.4 billion hostile takeover bid from Paramount Skydance, according to reports from CNBC. This decision comes despite billionaire Larry Ellison's support, who personally guaranteed the media giant's proposal.

Warner Bros and Paramount Skydance have both chosen not to comment on the report. The anticipated rejection keeps Warner Bros in position to consider a competing offer from Netflix, reported to feature a clearer financial structure and reduced execution risks compared to Paramount's proposal.

Paramount attempted to bolster its bid with enhancements, including increased regulatory reverse termination fees and deadline extensions for its tender offer. However, the unchanged $30-per-share all-cash bid remains under scrutiny, with industry experts citing Warner Bros' concerns over valuation and strategic alignment.