Warner Bros Discovery Likely to Reject Paramount’s Bid
Warner Bros Discovery is preparing to reject a takeover proposal valued at about $108 billion made by Paramount, according to people familiar with the matter. The company’s board is expected to advise shareholders against the offer, citing concerns over valuation, deal structure and execution risks.
Concerns Over Paramount’s Proposal
Paramount’s bid values Warner Bros Discovery at roughly $30 per share and is largely structured as an all-cash offer. However, Warner Bros Discovery’s board has raised questions about the certainty of financing and potential regulatory hurdles associated with the proposal. Executives are said to believe that the offer does not fully reflect the long-term value of the company’s film, television and streaming assets.
Netflix Emerges as Key Contender
At the same time, Warner Bros Discovery has been engaged in discussions with Netflix over a possible transaction involving parts of its business. While details of the Netflix proposal have not been made public, it is seen internally as more credible and strategically aligned. Industry observers say Netflix could benefit significantly from Warner Bros Discovery’s content library and studio operations if a deal materialises.
Board Deliberations and Next Steps
The board of Warner Bros Discovery is expected to formally communicate its position to shareholders in the coming days. While Paramount could still revise its bid, there is no indication so far that a higher or restructured offer is imminent. Any transaction would also require regulatory approvals, given the scale of the companies involved.
Wider Industry Implications
The potential rejection of Paramount’s bid highlights consolidation pressures in the global media and streaming industry, where companies are seeking scale, premium content and cost efficiencies. The outcome of these talks could reshape competition among major entertainment groups.
