The Board of Directors of Warner Bros. Discovery is likely to advise shareholders to vote against Paramount Skydance's $108.4 billion acquisition proposal and instead support Netflix's offer. This was reported by UNN with reference to Reuters.
Details
According to Reuters sources familiar with the situation, the Warner Bros. Discovery board of directors may announce its decision as early as Wednesday. It is expected to recommend that shareholders reject Paramount's offer.
Such a decision would mean supporting Netflix's offer in the battle for Warner Bros. assets, which include a film and television studio with a large library of films and series, as well as the HBO Max streaming service. A Warner Bros. Discovery spokesperson declined to comment.
It is worth noting that the winner of this deal will gain a significant advantage in streaming competition due to access to a large content library. Earlier this month, Netflix won by offering $27 cash per share.
After that, Paramount CEO David Ellison directly approached Warner Bros. shareholders with an offer to buy the entire company for $30 cash per share. In its regulatory filings, Paramount stated that its offer surpasses Netflix's and has a simpler path to regulatory approval.
Paramount's offer financing includes the issuance of $41 billion in new shares backed by the Ellison family and RedBird Capital, as well as $54 billion in debt commitments from Bank of America, Citi, and Apollo.
In addition, the article states that, according to Bloomberg, Jared Kushner's Affinity Partners, which was one of Paramount's financial partners, is withdrawing from the deal.
Recall
Netflix announced a deal with Warner Bros. Discovery to acquire the television and film studio, including HBO Max, for $72 billion. This transaction, which creates a streaming giant, is expected to close in the third quarter of 2026 and will require close regulatory scrutiny.