Warner Bros Discovery board reportedly set to reject Paramount Skydance $108.4bn takeover bid

Warner Bros Discovery’s board is expected to recommend that shareholders reject Paramount Skydance’s $108.4 billion takeover bid, according to reports, with a decision potentially announced as early as Wednesday.

The move would represent a significant setback for Paramount’s efforts to secure one of the most valuable portfolios in global entertainment. Warner Bros Discovery’s assets include its historic film and television studio, with a catalogue spanning titles such as Casablanca, Citizen Kane, Harry Potter and Friends, alongside HBO and the HBO Max streaming service.

Control of the portfolio would offer a major advantage in the intensifying competition among streaming platforms.

Earlier this month, Netflix emerged as the preferred partner for Warner Bros Discovery after agreeing a $27 billion cash-and-stock deal for the company’s non-cable assets. That agreement prompted Paramount chief executive David Ellison to bypass the board and appeal directly to shareholders with a $30-a-share, all-cash offer for the entire company.

Paramount has argued in regulatory filings that its proposal is superior to Netflix’s and would face fewer regulatory obstacles. The bid is backed by $41 billion in new equity from the Ellison family and RedBird Capital, alongside $54 billion in debt commitments from Bank of America, Citi and Apollo.

However, Jared Kushner’s Affinity Partners, previously a financing partner for Paramount, is reported to be withdrawing from the process.

As part of efforts to secure political support, Ellison has reportedly told White House officials that he would make “sweeping changes” at CNN if his bid succeeded.

According to the Wall Street Journal, Ellison travelled to Washington to reassure Trump administration officials following the launch of his hostile offer, which came after Netflix and Warner Bros Discovery announced their agreement last week.