Showdown in Hollywood: Paramount's Billion-Dollar Bid Faces Rejection

Warner Bros Discovery is set to reject Paramount Skydance's $108.4 billion offer despite backing from billionaire Larry Ellison. The board's decision might favor Netflix's offer instead, as it comes with clearer financing and fewer risks. The merger would potentially create a media giant bigger than Disney.

Warner Bros Discovery is expected to dismiss Paramount Skydance's amended $108.4 billion hostile bid, despite billionaire Larry Ellison's personal guarantee backing the deal, according to sources familiar with the situation.

While the board has not finalized its decision, a meeting is anticipated next week. Analysts suggest Warner Bros might lean towards a rival offer from Netflix due to its more transparent financing and reduced execution risks. The current proposal positions Warner Bros for a potential breakup fee of $2.8 billion if it abandons the Netflix agreement.

Investor Harris Oakmark and others have expressed skepticism over the revised offer, citing insufficient coverage of the breakup fees and potential regulatory challenges. Political figures, including President Trump, have also raised alarms about industry consolidation. The proposed merger would create an entity larger than industry leader Disney.