Warner Bros Discovery Likely to Reject Paramount's $108 Billion Bid; Netflix Could Win Mega-Deal

Warner Bros. Discovery is leaning towards rejecting Paramount Skydance Corp.'s $108.4 billion hostile takeover bid, according to sources familiar with the situation, as reported by Bloomberg and Reuters.

The possible rejection stems from concerns within Warner Bros. Discovery regarding the financing terms and other aspects of the Paramount Skydance offer, Bloomberg noted.

Reports indicate that the Warner Bros. Discovery board may decide as early as Wednesday to turn down Paramount Skydance's bid and could advise shareholders to vote against the acquisition, according to Reuters.

**Netflix Emerges as a Frontrunner**

Sources speaking to Bloomberg suggest that the Warner Bros. board views Netflix's offer more favorably after reviewing Paramount's proposal.

Netflix initially expressed interest in acquiring Warner Bros. Discovery earlier in the month. Subsequently, Paramount Skydance submitted a larger, all-cash offer.

Bloomberg reports that Warner Bros. Discovery is expected to file its response to Paramount's tender offer by Wednesday.

A rejection of Paramount's bid could allow Netflix to proceed with its acquisition of Warner Bros. Discovery, gaining access to its extensive library of films and television shows, including iconic titles like Casablanca, Citizen Kane, Harry Potter, Friends, and HBO content.

**Netflix vs. Paramount: The Stakes**

The acquisition of Warner Bros. Discovery would give the winning bidder a significant advantage in the competitive streaming landscape by securing a valuable content portfolio.

Earlier this month, Reuters reported that Netflix proposed a $27 cash-and-stock deal for Warner Bros. Discovery's non-cable assets. In response, Paramount CEO David Ellison presented Warner Bros. Discovery shareholders with an all-cash offer of $30 per share for the entire company.

Paramount argues that its offer is superior and has a clearer path to regulatory approval, according to a regulatory filing.

**Kushner's Firm Withdraws**

Bloomberg also reports that Affinity Partners, led by Jared Kushner, has withdrawn from the Paramount bid to acquire Warner Bros. Discovery.

Affinity Partners was initially slated to be a financing partner in Paramount's $108.4 billion bid. The involvement of former President Trump's son-in-law in a deal that the president might review reportedly generated unwanted attention for Kushner, according to Bloomberg's sources.

The Paramount bid is now backed by $41 billion in new equity from the Ellison family and RedBird Capital, along with $54 billion in debt commitments from Bank of America, Citi, and Apollo.