Warner Bros. Discovery Moves to Reject Paramount Skydance’s Hostile Takeover Bid

Warner Bros. Discovery is set to advise its shareholders to reject a hostile takeover bid from Paramount Skydance, raising concerns over the offer’s financing certainty, regulatory hurdles, and overall deal structure, according to reports citing people familiar with the matter.

The Warner Bros. Discovery board has reportedly concluded that Paramount’s tender offer falls short of the value and assurance provided by the company’s existing strategic agreement with Netflix, Bloomberg reported. The board is expected to formally recommend that shareholders turn down the bid, potentially as early as Wednesday.

One of the major sticking points highlighted by Warner Bros. Discovery is the financing framework underpinning Paramount Skydance’s proposal. The bid is partially backed by equity commitments associated with a trust that oversees the wealth of Larry Ellison, the father of Paramount Skydance CEO David Ellison, raising questions around certainty and long-term stability.

In addition to financing concerns, the board is also wary of potential regulatory risks and complexities that could delay or derail the transaction, further weakening the attractiveness of the proposal compared to Warner Bros. Discovery’s current strategic roadmap.The move signals Warner Bros. Discovery’s intent to prioritise deal certainty and shareholder value amid heightened consolidation activity in the global media and entertainment sector.